The big picture: Neither company has much experience in the credit card industry but both are looking for alternatives as their primary sources of income - iPhone sales and securities trading - are slowing.
Apple is reportedly partnering with financial services provider Goldman Sachs on a credit card that’ll integrate with the Apple Wallet app to help consumers better manage their money, sources familiar with the matter told The Wall Street Journal.
The card, which will use Mastercard’s payment network, could offer perks like two percent cashback on most purchases and perhaps even higher kickbacks when buying Apple products. Through the Apple Wallet integration, users will be able to set spending goals, manage balances and track rewards, we’re told.
Sources say Goldman is adding customer support call centers and building an internal network to handle what’ll be its first credit card, the latter of which has a budget of around $200 million.
Apple already earns a small cut when iPhone users make purchases using their credit cards via Apple Pay. The hope is that they’ll generate even more revenue when their own card is used. The initiative could also boost adoption of Apple Pay which hasn’t expanded as rapidly as some hoped.
The card will be offered to employees for testing in the coming weeks ahead of a public rollout later this year.
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