Apple Goldman Sachs To Pull The Plug On Credit Card Partnership
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Apple is ending its credit-card collaboration with Goldman Sachs Group, says a report by the Wall Street Journal. According to sources familiar with the matter, the tech giant has submitted a proposal to the Wall Street bank to conclude the contract over the next 12 to 15 months. This would result in an end to the partnership between Apple and Goldman that both had started when they introduced a virtual credit card back in 2019.
The end of the partnership between Apple and Goldman Sachs would include their entire consumer collaboration, as outlined by the report. Notably, earlier this year, in April, the iPhone maker introduced a high-yield deposit account, providing a higher annual percentage yield compared to Goldman’s online savings account at its digital consumer bank, Marcus.
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This marks a complete reversal for both the companies that extended their partnership until 2029 just last year. However, it’s not particularly unexpected, considering reports that suggest that Goldman Sachs incurred significant losses in the attempt to establish this full-service operation.
Meanwhile, the fate of the Apple Card and the savings account hinges on the iPhone maker securing another issuer. While the suggested 12 to 15 month timeline provides ample room for the tech giant, securing a positive response is crucial.
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Earlier this year, Cupertino, California-headquartered Apple unveiled its “buy now, pay later” (BNPL) service in the United States, utilising the Mastercard Installments programme. During the announcement, Apple specified that Goldman served as the issuer for the Mastercard payment credential.
According to in Fortune, in a statement, Apple said it was “focused on providing an incredible experience for our customers to help them lead healthier financial lives”.
“The award-winning Apple Card has seen a great reception from consumers, and we will continue to innovate and deliver the best tools and services for them,” the Cupertino, California-based company said in the statement, the Fortune report added.
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