“Hey Siri, how many points do I have?”
Apple is working on a new credit card that will tie into its Apple Pay contactless payments system, The Wall Street Journal reported May 9 (paywall). It’s reportedly working with Goldman Sachs to develop the product, which would be the bank’s first card.
The card may launch next year, and the perks have yet to be nailed down. It would likely replace Apple’s existing rewards credit card that it has with Barclaycard, which offers special financing on Apple products, as well as additional points on purchases at Apple stores and restaurants. Apple also worked with Discover to launch a pseudo-debit card for person-to-person payments that it’s called Apple Pay Cash.
The new card could be a win-win for Apple and Goldman. As the Journal reports, Goldman’s revenue from securities trading has fallen by two-thirds since the 2008 financial crisis, and so it’s looking to new banking areas, such as consumer products, to bolster its bottom line. Apple, on the other hand, is generating far more revenue than ever from its services business, which includes sales of apps, games, movies, music, and subscription services. These sales have helped shore up any weaknesses the company has seen from stalling iPhone sales growth.
Apple generates a small amount of revenue on each Apple Pay transaction, and that fraction would increase, were it to convince users to switch to its own card. Apple and Goldman Sachs both declined to comment.