by: Elizabeth Balboa, Benzinga Staff Writer
Expanding on an earlier deal to extend loans to iPhone buyers, Apple Inc. AAPL 1.52% and Goldman Sachs Group Inc GS 1.22% are collaborating to issue a credit card branded with Apple Pay, according to The Wall Street Journal.
The new relationship would replace Apple’s longstanding rewards card partner, Barclays PLC (ADR) BCS 0.54%, the report said.
Why It’s Important
The Apple card will break Goldman Sachs into the plastic market and help grow its retail banking business to offset a waning securities trading segment.
It will also build on Apple’s nascent Pay tool to deepen the tech giant’s role in consumer transactions. Analysts regard services like Apple Pay as critical growth drivers central to the Apple thesis.
Goldman and Apple spiked sharply on the news, while Barclays fell marginally.
The card could be released early next year, according to the Journal. Apple and Goldman are still determining the terms and benefits of the card.
Photo courtesy of Apple.
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