Goldman Sachs Group Inc. (NYSE: GS) and Apple Inc. (NASDAQ: AAPL) shocked the world when they announced that they are planning to introduce a new joint credit card. The duo plan on debuting this credit card as early as next year.
The platform for the card will be branded with Apple Pay, the online mobile payment platform Apple has been pioneering for years.
This move also comes at an important time for Goldman Sachs. The investment bank currently is making a push into consumer banking activities such as deposit-taking and personal loans, and this card would be a further extension into the trillion-dollar market that is credit cards. Goldman Sachs also will displace Barclays as Apple’s financial partner for credit cards.
According to CNBC:
The move could address priorities for both companies. Apple is looking to boost revenue from things other than gadgets, and the payments space is in the midst of intense competition from banks and tech startups. Goldman is looking to diversify its revenue away from institutional areas like trading and investment banking with its push into areas of finance that touch ordinary consumers.
Previously it was reported that Apple was in talks with Goldman Sachs to offer financing for its customers buying Apple products in store, including iPhones.
Shares of Goldman Sachs were last seen at $244.65, with a consensus analyst price target of $275.43 and a 52-week trading range of $209.62 to $275.31.
Apple was trading at $189.47 a share, with a consensus price target of $194.49 and a 52-week range of $142.20 to $190.37.