Apple and Goldman Sachs are joining forces to launch a credit card linked to customers’ iPhones, according to a report in the Wall Street Journal.
The new card, which is due to be launched in spring this year and rolled out to employees in the coming weeks, is designed to help users more easily manage their money through Apple’s Wallet app.
It will provide a range of features common to those offered to the customers of challenger banks, such as spending goal limits and the ability to manage balances, sources told WSJ.
The move could pose a threat to challenger banks, which have sought to distinguish their services from traditional lenders by offering innovative ways to budget. But it also lends weight to Apple’s push into services in recent years and offset the slowdown in iPhone sales.
The news marks one of the most significant incursions yet by an American tech giant into the financial services space. Fintech startup and banking executives have been concerned for some time about the prospect of Silicon Valley firms entering the finance space, given their track record for disrupting traditional industries.
But many believe that last year’s Cambridge Analytica scandal and the subsequent threat of new regulation means that many tech firms are now less likely to enter such a highly regulated industry. In this context, partnering with an established player in the sector may become more common.
Neither Apple nor Goldman Sachs immediately responded to NS Tech’s requests for comment.