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Goldman Sachs Group Inc has picked a little-known technology firm to help handle payments for its planned credit-card partnership with Apple Inc.
The bank struck a deal last year to license payments-processing software from CoreCard Software, owned by Intelligent Systems Corp, to help with its foray into the consumer-card business, according to a source, who asked not to be identified.
Such technology is typically used for managing card authorisations, identifying fraud in real time and calculating interest or rewards.
The deal could give a big boost to Norcross, Georgia-based Intelligent Systems, which had about $16 million in revenue for the 12 months through September 30 — potentially setting it up to multiply in size if Goldman’s partnership with Apple proves successful.
Representatives for Goldman Sachs, Apple and Intelligent Systems declined to comment. Shares of Intelligent Systems jumped as much as 8.9 per cent and were up 7.7 per cent at 10:33 a.m. in New York. The stock has climbed 69 per cent this year.
Goldman’s selection of CoreCard is a surprise in an industry that has long been dominated by companies such as Total System Services Inc and First Data Corp, each over 100 times larger than Intelligent Systems in terms of revenue.
“Companies that cant find us are probably clueless,” J Leland Strange, Chief Executive Officer, Intelligent Systems, told investors on a conference call.
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