According to a new report from the WSJ, Apple and Goldman Sachs are partnering on a different kind of product for both companies — a credit card. The Mastercard-based card would be focused on Apple Pay and feature some deep integrations in iOS.
This card could launch later this year in the U.S., which would coincide with the next iPhone. An Apple credit card would be a good way to take a bigger cut on Apple Pay transactions. Instead of splitting fees between the card issuer, the card network and Apple, Apple would get a portion of the fees for the card issuer.
It could also be a way to evangelize Apple Pay. While most cards are now compatible with Apple Pay in the U.S., many people still don’t think about paying with their iPhone or Apple Watch.
This is also uncharted territory for Goldman Sachs. According to the WSJ, the new card would represent Goldman’s first card. The company could be investing as much as $200 million to build a support team and the IT infrastructure to handle payments. You could expect cash back on some purchases.
More interestingly, Apple could also be working on an Apple Wallet overhaul for this credit card. You would be able to set up spending goals (like the rings in the Activity app), get notifications about your spending habits (like Screen Time) and track your rewards. It’s unclear if Apple plans to open up those new features to other banks.
By partnering with Apple, Goldman Sachs would get a great distribution channel. And by launching a card, Apple would prove once again that, given enough time, all companies eventually become banks.