Partnerships / Acquisitions

For Goldman And Apple, One Word: Plastic (Cards, That Is)

Two marquee names — one in tech and the other in finance — and a card between them.

News came Thursday (May 10) that Apple and Goldman Sachs Group are in the midst of bringing a joint credit card to market.

In terms of details, noted The Wall Street Journal, the card would be issued under the Apple Pay designation and may come to market early next year. The financial publication reported that “people familiar with the matter” said Apple will replace its current relationship with Barclays, under which the latter firm and Apple have a rewards card, marked by interest-free financing and rewards points tied to Apple gift cards.

The move by Goldman and Apple has a cross-pollination effect of sorts. For Apple, there’s the chance to “deepen” a “push into its customers’ wallets,” according to the WSJ, while Goldman now comes to market with its first credit card.

The embrace of plastics means Apple is continuing to train its sights beyond hardware like the iPhone and is looking to lift its Apple Pay business. In an example of that momentum, in Apple’s latest earnings report, in early May, the company said it sold 2.9 percent more iPhones in the first quarter than a year ago, to 52.2 million units. But services revenues were up 31 percent, to $9.2 billion.

For Goldman, the extension carries beyond the company’s securities business and continues a move into consumer banking.

Beyond the card, ancillary services will be on offer, as Goldman will feature loans for customers who come into stores to buy Apple’s hardware.

On Wall Street, stocks reacted with a mildly positive reception, as shares of Apple were up 1 percent to roughly $189; shares in Goldman Sachs were roughly flat at $243.39.

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