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Apple, Goldman Sachs Searching for Revenue
Apple and Goldman Sachs are teaming up to issue a joint credit card that will incorporate iPhone features for intuitive money management.
A beta test of the card will be rolled out to employees within the next few weeks and its official launch will take place later this year. The goal is to entice cardholders by offering more robust features that can work in cohesion with Apple’s Wallet app.
The card will allow for money management features, such as spending goals, bank balance tracking and financial rewards. The foray into the money management business comes as Apple is looking towards other revenue sources, particularly after iPhone sales are languishing.
Goldman Sachs is also looking for other avenues for revenue. After months of review, the investment firm is paring down its commodities arm, citing too much capital used for too little profit generated.
The proposed move comes as Chief Executive David Solomon is reassessing the firm’s business operations in order to cut costs and explore other avenues for profit generation. Commodities traders at Goldman had their worst year in 2017 and only improved slightly in 2018.
Goldman Sachs generated $6.04 per share in profit for the fourth quarter of 2018, versus the $4.45 per share estimate of analysts surveyed by data company Refinitiv. The investment bank also posted revenue of $8.08 billion, beating estimates of $7.55 billion.
Both Apple and Goldman Sachs are entering a competitive space with little experience. Goldman Sachs is hoping to leverage Apple’s wide user base to attract cardholders that can earn cash back rewards of 2 percent on purchases and possibly more on Apple devices.
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