Apple and Goldman Sachs, through joint efforts, will issue a credit card that links with the iPhone, The Wall Street Journal reported on Thursday (Feb. 21). The new card is aimed at helping consumers with money management, and bringing the companies into new areas of business.
As reported, the card will be first tested by employees through the next few weeks. The card will officially debut this spring, the Journal reported, quoting unnamed “people familiar with the matter.”
The joint efforts will offer “extra features” across the tech giant’s Wallet app. Among the money management offerings will be the ability to set spending goals, track rewards and also view balances.
The rollout comes in the wake of reports last year that the two companies would launch the joint card, and in terms of each individual company’s strategy, Apple gains a foothold in the financial lives of its users, while Goldman broadens reach in its continued push to move beyond its traditional bastion among wealthier clients.
As the report noted, Apple sought to move beyond hardware and gain more recurring revenues and fees stemming from services. The company has targeted a goal of $50 billion in services revenues by 2020. In terms of card payments, the company now gets a percentage of transactions done with Apple Pay. But with its own (and in this case, with Goldman, joint) card offering, swipe fees would increase — and ostensibly, Apple Pay would see greater adoption among end users and the merchants who accept Apple Pay.
The credit card is a new offering for Goldman, and as securities trading wanes as a business, the company has pushed into online lending, notably through Marcus — and reports Thursday said the company would offer Marcus and wealth management products to Apple users.
As reported, the Apple Pay card will use the Mastercard network, according to the sources cited by the Journal. Among the features: Cardholders will earn cash back of around 2 percent on purchases, and possibly more than that on Apple offerings.