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Apple (AAPL) and Goldman Sachs (GS) plans to issue a common credit card associated with iPhone features to help users manage their money, the Wall Street Journal reported on Thursday. The Apple credit card will be launched in the spring, according to the report.
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Employees will be the first to use the credit card as a test before deploying it widely later this year, the Journal said.
For Apple, the credit card will generate user fees because it continues to expand its service business. For Goldman, the card is part of the investment bank's efforts to attract consumers.
Businesses are hoping to attract consumers by offering cardholders cash backs of about 2% on most purchases. The discount could be higher on Apple devices and services, the Journal said.
An Apple credit card would strengthen the wallet app
The card will offer additional features in the Apple Wallet app, the report says. These could include setting goals for spending, tracking rewards and managing balances.
Apple's digital payment service, Apple Pay, currently uses third-party credit cards. The company receives a small reduction in transaction fees when iPhone users make credit card purchases via Apple Pay.
With the Apple credit card, the company would benefit from a greater reduction in transaction fees.
The Apple-Goldman Sachs card will use MasterCard(MA) payment network, said the Journal. It's the second largest in the United States after Visa (V).
Apple's shares fell by 0.6%, nearly 171, in morning trading on the stock market today. Goldman Sachs shares plunged 0.2%, nearly 198.20.
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