Apple & Goldman Sachs Reportedly Developing a Credit Card Built for iPhone

Apple credit card could be next services conquest

The card, which will be linked with Apple's Wallet app, will allow users to set spending goals, track rewards, and manage balances, the WSJ said.

The credit card itself would allow Apple to take a larger cut of transaction fees than it now gets from its existing payment service Apple Pay, although the WSJ noted that the new product could potentially anger Apple's banking partners who account for the bulk of the transactions that now go through Apple Pay. That's up from 36% estimated in the September quarter, and 20% percent for the December quarter of 2017.

Where the Goldman Sacks card will be different, according to the WSJ article, is its tighter integration with features offered by the Apple Wallet app on the iPhone and the iPod Touch. Apple and Goldman Sachs are both seeking new revenue streams from consumers and capitalizing on Apple's massive iPhone installed base could be one way for them to do it quickly. The bank has plans to add customer support call centers and improve its internal infrastructure so that increased payment traffic can be handled efficiently.

Apple has seen a slide in sales of iPhones, its main product.

The card will be available to employees for testing in the next few weeks and will be launched to the wider market later this year, according to the report. The joint credit card with Goldman Sachs will use Mastercard's payment network.

Goldman Sachs has been investing in rolling out consumer banking products through its Marcus unit. As anyone in the card business will tell you, it is the mundane features, like credit policy, exception management, and risk control that ensure profits.

Currently, Apple partners with Barclay's to issue a Barclaycard Visa with Apple Rewards. Apple did not immediately respond to a Fortune request for comment.

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