Goldman Sachs, one of the most prestigious Wall Street firms and Apple, one of the leading electronics manufacturers in the world, just announced that they would jointly be introducing a credit card to the market. The Wall Street Journal noted that it would be released under the Apple Pay designation (obviously) and come to the market as soon as next year.
This would replace Apple’s current relationship with Barclays under which there is a loyalty card for customers to get reward points that go towards Apple Gift cards. The card is also interest free. The new card would push Apple’s brand further into people’s pockets and get Goldman Sachs its first credit card. It would also push the latter towards a consumer market much broader and larger than the one it currently serves.
Apple posted a favourable earnings report for last quarter, showing a 2.9% bump in iPhone sales than a year ago and a very impressive $9.2 billion (31%) rise in service revenues. The company may want to ride that momentum to push the Apple Pay service further than ever before.
The card will feature a lot of incentives for customers to adopt Goldman Sachs’ services such as loans for those who buy Apple hardware.
The finer details of the deal are still undecided since the talks between the two companies are continuing.