The card will have no fees and low interest rates. "Pundits say it'll be a profit bust. Not us," wrote a team of Morgan Stanley analysts led by Katy Huberty in a July 10 research report.
They see three ways in which the new card will widen the Cupertino, Calif., company's overall margins:
1. The Apple Card will attract more customers to Apple stores, where margins are wider than they are in channels like telecom companies and big-box retailers.
2. It'll help build the profile of Apple Wallet and increase usage of the high-margin Apple Pay.
3. And the card will help increase revenue from services like the App Store, AppleTV and AppleNews.
As for Goldman, the analysts said, its move into credit cards is designed to help it build up its consumer business.
Goldman "is in the middle of a decade-long repositioning to increase capital efficiency and lower its earnings volatility," Morgan Stanley analysts wrote.
"The partnership with Apple is another step in the journey to increase loans and resultant net interest income, a more stable revenue source than trading revenues."
On Wednesday morning, Apple shares were trading up 0.9% at $203.01, Goldman was off 0.5% at $206.66 and Mastercard was up 1.1% at $276.41.