Apple and Goldman Sachs partner on a different type of product for both companies – a credit card, according to a new report from the
This card could be launched in the United States later this year, coinciding with the next iPhone. A credit card from Apple would be a good way to get a bigger cut on Apple Pay transactions. Instead of splitting the card issuer, the card network and Apple, Apple would receive a portion of the card issuer’s fees.
It may also be a way of evangelizing Apple Pay. Although most cards in the United States are now compatible with Apple Pay, many people still don’t think about paying with their iPhone or Apple Watch.
For Goldman Sachs, this is also an unknown territory. The new card would be Goldman’s first card, according to the WSJ. The company could invest up to $ 200 million to create a support team and IT infrastructure to manage payments. You could expect cash back on some purchases.
More interestingly, for this credit card, Apple could also work on an Apple Wallet overhaul. You could set spending targets (like the rings in the Activity app), get notified about your spending habits (like Screen Time) and track your rewards. If Apple plans to open these new features to other banks, it’s unclear.
Goldman Sachs would have a great distribution channel by partnering with Apple. And by launching a card, Apple would prove once again that all companies eventually become banks with sufficient time.