Goldman Sachs and Apple are looking to partner together to create a new credit card, the first foray by Goldman Sachs into the $1 trillion credit card market, The Wall Street Journal reported Thursday, citing unnamed sources.
The Goldman-Apple credit card would be tied to Apple's payment service known as Apple Pay and Apple's co-brand partnership with Barclays would come to an end, the Journal said.
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Goldman has been incrementally pushing into consumer banking products. It does personal loans and savings accounts under the brand Marcus, and has been looking at other consumer products.
A co-brand credit card is when a company partners with a bank to create a credit card that will spur loyalty and spending with the company. There are hundreds of co-brand partnerships, with brands large and small, and it's an intensely competitive business for credit card companies.
Apple is a huge and iconic brand, and it would be a symbolic success for Goldman as it enters the consumer credit card market, industry experts said, But it is not a large co-brand partnership like American Express' partnership with Delta Air Lines, Citigroup's partnerships with Costco and American Airlines or JPMorgan Chase's partnerships with Marriott and United.
"It's not going to put them on the map when it comes to market share, but it's definitely a strong customer base you want to have," said Brian Riley with Mercator Advisory Group, which specializes in consulting with companies looking to do co-brand credit cards.
This is the second time Apple and Goldman have been mentioned together as potential partners. The Journal reported earlier this year that Goldman was looking to take over Apple's iPhone financing program from Citizens Bank.
Goldman Sachs and Apple both declined to comment on the report.