Goldman had been looking for a way to deepen its push into consumer finance. (Photo: AP)
(Bloomberg) –Apple and Goldman Sachs Group will begin testing a jointly developed credit card with employees in the next few weeks, according to people with knowledge of the matter.
A wider rollout to consumers will come later this year, said the people, who asked not to be identified because the information isn't public.
The card will pair with new iPhone software features that will help users manage their finances, according to the Wall Street Journal, which reported the plans earlier Thursday.
Representatives for Apple and Goldman Sachs declined to comment.
Bloomberg reported last May that Apple and Goldman were developing a co-branded credit card as a way for the investment bank to deepen its push into consumer finance.
Goldman, which has been expanding into the field through its Marcus unit, has been planning a deeper foray into the world of co-branded cards, a space that's become increasingly competitive as banks ratchet up rewards to win business with retailers.
Goldman last year acquired personal-finance startup Clarity Money, an app founded by Adam Dell, the brother of Michael Dell. Clarity uses artificial intelligence to help consumers make better financial decisions by canceling or lowering bills, finding a better credit card or creating a savings account.
Apple, which in January reported its first holiday-quarter sales decline since 2001 as revenue from the iPhone tumbled, has been investing in services such as Apple Pay and Apple Music to counter declines in its hardware business. Investors have responded well to the strategy.
The credit card, as part of Apple Pay, would contribute to Apple's growing services segment.
The company is holding a media event on March 25 during which it plans to introduce two other new services: a premium magazine subscription platform and an original video content offering to compete with Netflix and Amazon Prime.
Apple also is preparing an iPhone software update, iOS 12.2, that includes a revamped Wallet app. That new app could set the foundation for integrating the new credit card.
Copyright 2019 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
