The iCredit Card? WSJ Reports Apple And Goldman Sachs Are Working On A Joint Card

Apple Inc. (NASDAQ: AAPL) is reportedly teaming up with bank giant Goldman Sachs Group Inc (NYSE: GS) to launch an Apple-branded credit card in the coming months, according to The Wall Street Journal.

What Happened

Sources close to the matter told WSJ Apple's new credit card will be linked with iPhone features that will help customers manage finances. The card will likely offer customers 2 percent cash back for most purchases and a potentially higher cash back reward for purchases of Apple products.

Apple is likely looking at the payment space as a new way to diversify revenue away from its products and collect a bigger take of iPhone credit card purchases. Goldman Sachs could be interested in diversifying its business away from institutional services like investment banking, CNBC noted.

Why It's Important

Investors assuming Apple's new credit card will notably mover the needle for the company may want to reconsider, CNBC quoted Credit Suisse as saying in a research report. The card will offer high rewards amid a competitive credit card market and "this is clearly not a gamechanger."

The credit card will soon be tested by employees with a launch to the public expected this year on Mastercard's (NYSE: MA) network, WSJ said.

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