GOLDMAN APPLE PAY. Goldman Sachs and Apple to Team Up. The two companies have been talking for months and haven’t settled on all the details, said one of the people. Todd Horwitz, Bubba Trading.

 

Apple and Goldman Sachs have been working for months on a new credit card product that would bear the Apple Pay brand, according to two people familiar with the companies’ talks. They spoke on the condition of anonymity because the talks were continuing.

The product would be Goldman’s first credit card offering and could help the bank’s effort to expand its consumer products. For Apple, the deal could help it extend its Apple Pay brand, the technology giant’s digital payment service. The two companies have been talking for months and haven’t settled on all the details, said one of the people.

The Apple-Goldman card could help the companies combat weaknesses in their core businesses. As new iPhone sales growth slows, Apple is focusing on services such as mobile payments, streaming-music subscriptions, and App Store sales. Apple Pay, which generates revenue on each transaction, is a key contributor, but adoption has been slower than executives hoped.

Goldman, meanwhile, is pushing into consumer banking to compensate for a slump in securities-trading, where revenue has fallen by two-thirds since the financial crisis. It launched a retail banking business called Marcus in 2016 for online savings accounts and personal loans, and executives have been exploring adding credit cards and wealth-management tools.

Apple executives have said they aim for Apple Pay to eventually replace cash and plastic as the primary way to pay. But Apple’s payment service has a long way to go. One of the people familiar with the discussions between Apple and Goldman said that taking Apple Pay into the physical world would help expand its reach. With an Apple Pay credit card, loyal iPhone users could use Apple Pay even in places that don’t yet accept digital payments, the person said.

Keep those stops tight
Todd “Bubba” Horwitz

IN ASSOCIATION WITH

Financial Markets & Political Commentary

 

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About the author

Todd Horwitz - Author of “Average Joe Options“. Todd began his trading career in 1980 at the CBOE. He was one of the original traders in the OEX & helped start the SPX. He is a member the CME where he trades S&P futures as well as foreign currencies & is a regular contributor to CNBC, Bloomberg, BNN, Fox & many other major news networks.