Apple, Goldman Sachs Reportedly Planning Credit Card with iPhone Features
Depending on who you ask, rewards credit cards are either a hackable finance tool or an all too tempting trap. Nevertheless several companies have taken a shot at entering the crowded market to varying levels of success. Now comes word that two major companies could be coming out with a new card that offers a FinTech twist.
According to a report in the Wall Street Journal, Apple and Goldman Sachs are looking to launch a new credit card together. However what’s described isn’t just any regular card, as it would be integrated into Apple Pay and Apple Wallet. Additionally WSJ reports the product would utilize new iPhone features meant to help users manage their money. These tools would apparently be exclusive to cardholders and may even borrow from the brand’s fitness tracker, encouraging customers to “close their rings” by completing various financial tasks.
Such a partnership between Apple and Goldman Sachs would make a lot of sense and would fit into current plans both companies have. With soft iPhone sales troubling Apple, diversifying their revenue has become a key priority. The hope is that the card would not only bring in more interchange revenue but could also help spur Apple Pay adoption. Meanwhile Goldman has been looking to expand its consumer finance business — a goal that their Marcus bank accounts have helped along. Presumably the institution’s acquisition of personal finance app Clarity Money last year was also part of this initiative.
As for what else the proposed card would offer, sources tell the journal that it will likely offer 2% cash back on most purchases with the possibility of higher rate offers for those buying Apple products with their card. It also appears as though the card will utilize the Mastercard network.
Overall the concept of an Apple/Goldman Sachs card is certainly interesting. Of course the real story is the FinTech push that would reportedly come with it. Not only could this credit card mean big things for mobile payments but could also bring innovative competition to the multitude of personal finance apps on the market. With Apple employees reported to be testing these new features in the near future, hopefully we’ll hear more about this project soon.