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Apple to End Credit Card Partnership With Goldman Sachs

Apple is reportedly looking for ways to end its credit card and savings account partnership with Goldman Sachs within a year or so.

Apple to End Credit Card Partnership With Goldman Sachs

Apple has recently sent Goldman Sachs a proposal to wind up the existing credit card and savings account partnership within the next 12 to 15 months, according to a Wall Street Journal report.

If the high-profile partnership were to end, Apple would require another financial partner to continue offering its popular credit card – Apple Card – service and the high-yield savings accounts under the Apple brand.

Apple and Goldman Sachs partnered for the savings accounts linked to Apple Card in late 2022. The new feature brought additional value to the tech giant’s credit card product, enabling customers to automatically deposit their Daily Cash cashback rewards and extra funds from a linked bank account or Apple Cash balance at high interest rates.

Both financial products under the Apple brand proved to be quite successful, with Apple Card’s Savings Account deposits exceeding $10 billion as of August 2023.

However, recently, Goldman Sachs has been diminishing its previous consumer banking ambitions to cut costs. The media reported that the lender may decide to sell its personal finance management business altogether. Goldman Sachs has also faced scrutiny from regulators lately due to allegedly gender-biased credit decisions and mishandling of refunds and billing errors.

This July, the information already leaked that Goldman Sachs was considering an action plan to complete the partnership program with Apple. A possible alternative at that moment was transferring the banking side of Apple Card and savings account services to American Express.

It’s not yet clear whether Apple has agreed to that variant, found a new partner or would consider other sweeping changes to its financial products portfolio.

Nina Bobro

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https://payspacemagazine.com/

Nina is passionate about financial technologies and environmental issues, reporting on the industry news and the most exciting projects that build their offerings around the intersection of fintech and sustainability.