( Reuters ) – Apple and Goldman Sachs rolled out a virtual credit card on Tuesday, which will help the iPhone manufacturer diversify from device sales and also expand the Wall Street bank's new consumer business.  With the card, Apple aims to collect iPhone owners with 2% cash back on purchases with the Apple Pay service, no fees and an app to handle their finances.
For Goldman, the card will strengthen the bank's focus on its Marcus consumer banking brand, which it launched in 2015 to offset unstable results from businesses such as trading and investment banking.
Apple shares rose about 1 percent to $ 195.30 in pre-watch trading.
The company said a limited number of people who had expressed interest in the Apple Card would begin receiving sign-up invitations on Tuesday.
"Apple Card does not play in the same league as premium rewards credit cards like Chase Sapphire Reserve or AmEx Platinum," said Sara Rathner, NerdWallet's credit card expert.
“These cards require extremely high fees, but in return you get some pretty sweet perks: massive sign-up bonuses, annual statement points, free Global Entry, and a higher points earning cost for travel expenses. "
Apple will offer an option for a physical card made of titanium, but with no visible number. Instead, the card number is stored on a secure chip inside the iPhone, which will generate virtual numbers for online purchases or over the phone that requires a number.
Apple said that purchase information will be stored on the user's iPhone and that it will not see the data. Goldman will not be allowed to use data for marketing purposes, nor to sell its other products.
Gene Munster, managing partner with Loup Ventures and a longtime Apple ranger, said the card's adoption is likely to be low in the first year, but it could generate about $ 1
But at Apple's size – $ 265.6 billion in fiscal 2018 sales – revenues mean less than the effect of keeping Apple customers tied to their brand, said Ben Bajarin, an analyst at Creative Strategies.  "If it works, there is one more thing that makes you deeply loyal and rooted in the Apple ecosystem, though something better comes along," he said.