Apple to End Its Credit Card Partnership with Goldman Sachs: WSJ Report

Goldman Sachs and apple partnership breaking up soon
In Short
  • Apple has reportedly submitted a proposal to end its partnership with Goldman Sachs.
  • Apple Card and high-yield saving account services are offered in partnership with the banking firm.
  • It is not clear who will take over the banking part once the contract ends but American Express is a possible option.

Remember Apple Card? Apple had expanded into the world of finance by introducing its own credit card about four years ago. Goldman Sachs, a major American banking company, and a long-standing institution since 1869, became Apple’s partner for its new credit card service.

Since its launch, the Apple Card has been a hit among users. It offers cash back on purchases across a wide range of outlets and daily cash back when used with Apple Pay. On top of this, Apple & Goldman Sachs had reportedly extended their contract some time ago last year, so that it would last through 2029.

But now, everything is going in the opposite direction. According to the latest report published by the Wall Street Journal, Apple is ‘pulling the plug‘ on its partnership with the American banking institution Goldman Sachs. An exit from the contract has been planned already, and the transition will be happening over the time period of 12 to 15 months, as the report stated.

apple card partner is goldman sachs 2019 advertisement
Apple Card Promotion from 2019 | Image Courtesy: Goldman Sachs/Apple

It is unclear for now who will be the banking institution that Apple will partner with next. As widely rumored, Goldman Sachs had also been in talks with American Express. The prospects of them taking over the Apple Card program were discussed, according to a previous report from June (Source: WSJ). Again, for now, we don’t know who exactly will back Apple’s foray into financial services.

Apple has gained so much momentum in the financial space with its credit card, BNPL service, and high-yield savings account features. This news is definitely a setback for their roadmap. Goldman Sachs has not spoken on this report yet. However, Apple did comment on this new report, according to Reuters. They confirmed that they will “continue to innovate and deliver the best tools and services for [consumers]“. This suggests that Apple’s banking services should continue to exist.

What are your thoughts on Goldman Sachs and Apple breaking up their contract? Do you like the Apple Card and its features? Let us know in the comments below.

SOURCE Wall Street Journal
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