Goldman Sachs Group Inc. (GS) and Apple Inc. (AAPL) are looking to launching a new credit card in a joint effort that marks Goldman's first foray into plastic payments and expands Apple footprint in the space. The card is expected to launch next year and will feature Apple's payments platform Apple Pay.

This move comes as the technology giant prepares to discontinue its long-time partnership with Barclays PLC (BCS), according to a Wall Street Journal report. The companies are reportedly still determining the details and terms of the card such as perks, but neither company has officially commented. Apple’s card with Barclays offers points toward Apple gift cards as well as 0% financing on its products.

Both Goldman and Apple shares were up more than 1% in Thursday’s session. (See also: Goldman Sachs Reports Needing Positive Reaction.)

New Card Is Good Business

This deal is a good opportunity for both Goldman and Apple to offset weaknesses in their core businesses. For Apple, credit cards are a way for it to focus on services like mobile payments at a time when sales growth for its iPhone are not consistently robust. Fewer consumers than expected have adopted Apple Pay.

Not only would this card boost adoption of Apple Pay, but also help Apple garner higher transaction fee if the card is used for purchases. A digital wallet payment through an iPhone, typically yields 0.15% transaction revenue for Apple regardless of the credit card linked to the wallet, reports the Journal. This new deal could double that, and could help drive Apple's services business revenue to $50 billion by 2020, compared to $24.4 billion in 2016.

For Goldman, the card could help boost its retail-banking business that is launched in 2016 as the bank grapples with weakness in securities trading since the financial crisis. Cardholders of the Apple Pay card could be potential customers for other Goldman banking products.The partnership will also include Goldman offering loans to in-store Apple customers for their purchase.The move also strengthens its links to Apple, which it has supported in several deals and fundraising efforts.