Consumer electronics giant Apple and financial services provider Goldman Sachs are reportedly partnering on a credit card that would be integrated with the Apple Wallet digital payment platform, according to The Wall Street Journal’s sources. And the credit card is reportedly going to operate under the Mastercard payment network with perks like 2% cashback and discounts for Apple products.
With Apple Wallet integration, users may also be able to set spending goals, track balances, and manage rewards. And Goldman Sachs would offer customer support through its call centers. Goldman Sachs also reportedly earmarked a budget of about $200 million to handle its first credit card product for supporting the call centers and building out an internal network for the service.
When consumers make purchases for Apple’s products through the Apple Pay digital payment service, the company also receives a cut from the transaction. With an Apple-branded credit card, the company would be able to gain an even bigger cut and it could also potentially boost Apple Pay adoption.
The Apple-branded credit card is believed to be distributed for employees first in order to test the product. And this would be followed by a public rollout later this year.
“Given that millennials tend to most value experiences and travel, they may continue to be attracted to travel rewards cards despite Apple’s powerful brand,” said NerdWallet staff writer Arielle O’Shea via LifeHacker. “Even the biggest Apple fans shouldn’t blindly turn to this card: It’s important to compare annual fees and features when shopping for a new card, and make sure the card fits your spending habits.”
Apple has a similar deal set up for its Barclaycard Visa credit card. This credit card allows consumers to finance Apple products and earn points for purchases without having to pay an annual fee.