Goldman Sachs, Apple team up on new credit card


The card would be branded with Apple Pay, the tech giant's digital payment service, the Wall Street Journal reported, citing people with familiar with the matter.

As per the reports of BGR, the card would be having the Apple Pay logo and would launch sometime around 2019. Apple could also collect a "bounty" from Goldman Sachs of over $100 for each new cardholder, and Goldman Sachs may offer special lending services to clients looking to buy Apple products, though both companies are still hashing out the details of their arrangement.

Goldman has been incrementally pushing into consumer banking products.

Apple now offers a credit card in partnership with Barclays, and the report stated that Apple chose not to collect the bounty and instead used the money for the interest-free financing of devices.

If the card, which marks the first major diversification of the Apple Pay brand beyond mobile, is a hit, it could help galvanize the wallet's lagging adoption.

There are hundreds of co-brand partnerships, with brands large and small, and it's an intensely competitive business for credit card companies. The new Apple Pay card would allow users to spend their Apple Pay Cash in any store that would be accepting the credit cards.

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This is the second time Apple and Goldman have been mentioned together as potential partners.

Goldman Sachs Bank USA last month acquired personal finance startup Clarity Money.

Apple has worked vigorously to make Apple Pay a safe and secure service that doesn't expose users' financial information to prying eyes. Financial terms of the deal were not disclosed.

"Consumers want a better way to manage their finances", Goldman Sachs' chief executive Stephen Scherr said in a release.

Although people don't consider Apple Pay a huge success, a report confirms that almost 16% of Apple user have configured Apple Pay on their devices.