Apple and Goldman Sachs will offer a new credit card next year, The Wall Street Journal has reported, and more corporate giants seeking to cater to millennials will likely follow, according to media reports.
Wall Street’s Goldman Sachs seeks to delver further into consumer banking and lending, while Apple plans to brand the card with its mobile payment and digital wallet platform.
Those two corporate giants are the latest to attempt to further reach millennials who are increasingly turning to credit, despite student loan debt and tight savings that are keeping them from buying homes.
Launched last fall, Uber’s Visa card is loaded with perks such as 4 percent back on restaurants, takeout and bars expenses and 3 percent back on airfare and hotels, including Airbnb. It also offers 2 percent back on all online purchases and 1 percent back on all other purchases.
There’s no annual fee while cardholders get a $100 bonus after spending $500 in the first 90 days. The annual interest rate is high, however — from about 16.5 percent to 25 percent, according to the company.
CNBC reports that the Chase Sapphire Reserve card, which initially offered a $1,500 sign-up bonus to people who spent $4,000 in the first three months, was very popular, especially among millennials. Chase said it cost some $200 million in profits (even with a $450 annual fee).
Read about this trend from CNBC.