Apple Inc. (AAPL) - Get Apple Inc. Report has teamed up with Goldman Sachs Group Inc. (GS) - Get Goldman Sachs Group, Inc. Report to offer a new credit card with accompanying iPhone features that will help users manage their money, The Wall Street Journal reported Thursday.
The card will be available to the public later this year after a testing period involving employees, the newspaper reported. The plan is to offer extra features on Apple's Wallet app that will let users set spending goals, track rewards points and manage balances, according to the article. The paper previously had reported on the venture, but the timing of the rollout wasn't clear.
Spokespeople for Apple and Goldman Sachs declined to comment.
To read Eric Jhonsa's take on Apple's credit card on Real Money, our premium site for active investors, please click here.
Apple has been working on ways to penetrate into the lucrative financial-services industry, while Goldman Sachs, a Wall Street firm that historically has catered to the wealthy and institutions with businesses like bond trading and investment banking, has sought to diversify by offering products and services tailored to regular consumers.
Apple would get a bigger slice of revenue from credit-card charges than it currently takes from purchases made via its Apple Pay service, according to the article.
Cardholders would earn about 2% cash back on most purchases, the paper reported.
Ted Rossman, an analyst at the website CreditCards.com, said that, based on the reported rewards level, the new card would be competitive with Citigroup Inc.'s (C) - Get Citigroup Inc. Report Double Cash Card.
It's "not groundbreaking but an interesting offer from Apple and Goldman, two companies with strong brand recognition," Rossman said. "They will likely position this as a good first for cash-back lovers who spend a lot with Apple."
Apple shares were down 0.3% to $171.55 on Thursday early afternoon, while Goldman shares were down 0.8% to $196.96.