Apple, Goldman Sachs Pair Credit Card and iPhone Features

Both companies seek additional sources as their basic businesses struggle.

February 25, 2019

ALEXANDRIA, Va. - Apple Inc. and Goldman Sachs Group Inc. have joined forces to roll out a joint credit card, plus new iPhone features, that will help consumers better manage their money, The Wall Street Journal reports.

In the next few weeks, the card will be issued to employees for testing, and it will launch officially later this year, insiders say. The two companies hope to lure cardholders by offering them special features on Apple’s Wallet app, which will let them to set spending goals, track rewards and manage their balances.

This move is seen as a major push by Apple into the financial lives of millions of iPhone users and part of Goldman’s broader strategy to appeal to rank-and-file consumers.

Apple currently makes a small profit when iPhone owners make credit-card purchases through Apple Pay, but the company would receive a bigger slice of the swipe fees from its own card.

The Apple Pay card will use Mastercard Inc.’s payment network, which is the second-largest in the U.S. after Visa. Cardholders will earn cash back of about 2% on most purchases and possibly more on Apple products and services.

The credit card is Goldman’s first, but the bank is adding customer-support call centers around the country and building an internal system to handle payments.