“Apple Inc and Goldman Sachs Group Inc. are preparing to launch a new joint credit card, a move that would deepen the technology giant’s push into its customers’ wallets and mark the Wall Street firm’s first foray into plastic,” Tripp Mickle and Liz Hoffman report for The Wall Street Journal.
“The planned card would carry the Apple Pay brand and could launch early next year, people familiar with the matter said,” Mickle and Hoffman report. “Apple will replace its longstanding rewards-card partnership with Barclays PLC, the people said. The partnership will extend into other services including Goldman offering in-store loans to Apple customers buying iPhones and other gadgets, an effort The Wall Street Journal reported on in February.”
“Goldman has the potential to raise Apple Pay’s profile, tying the mobile payment service to plastic touted in advertising and pushed by cashiers at Apple stores. Apple also stands to boost its revenue by collecting a bounty from Goldman for each new cardholder, the people said. These payments, which are common in store-brand cards, can exceed $100 per account. With the Barclays card, Apple declined to collect bounties and instead put that money toward interest-free financing of devices,” Mickle and Hoffman report. For Goldman, the card could help its nascent retail-banking operation, launched in 2016, add new customers who may be sold other banking products. It also deepens the firm’s ties to Apple, a company its bankers have advised in deals and fundraisings for years.””
Read more in the full article here.
MacDailyNews Take: Smells like money!
More Services revenue for Apple is certainly a Good Thing™ for AAPL shareholders.
[Thanks to MacDailyNews Readers “Fred Mertz,” “Dan K.,” and “L.P.” for the heads up.]