Apple is reported to be in talks with the Goldman Sachs investment bank over the possibility of offering loans to customers buying Apple products, like the iPhone.
The Wall Street firm is in talks to offer financing to shoppers buying phones, watches and other gadgets from Apple, people familiar with the matter said. Customers purchasing a $1,000 iPhone X could take out a loan from Goldman instead of charging it to credit cards that often carry high interest rates.
It should be noted that the talks between Apple and the investment bank are in early stages, and that nothing might come of them. Neither party in the talks would comment on the report.
It is possible that Goldman Sachs would take over financing for some form of Apple’s iPhone Upgrade program. The program allows users to get the newest iPhone every year, with AppleCare+ included.
Users in the program can trade-in their current iPhone for a new handset after 12 monthly installments have been paid. Opting for a new device begins the cycle once again. The program started in September 2015, and is financed by Citizens Financial Group, who offer zero-interest loans for iPhone upgrades and interest-based loan options for other device purchases.
Goldman Sachs is reportedly viewing the deal as a way to grow its new consumer banking business, which is an expansion into retail banking and consumer lending for the financial firm.