Apple Seeks to Dissolve Partnership with Goldman Sachs for Credit Card

According to a source familiar with the matter, Apple has submitted a proposal to terminate its credit card and savings account collaboration with Goldman Sachs within the next 12 to 15 months. Should this proposal be accepted, it would mark the conclusion of one of the most prominent partnerships between a financial institution and a technology company.

In addition, this would necessitate Apple to seek an alternative financial partner for its widely used credit card, Apple Card, and its high-yield savings accounts branded under Apple. Although Apple delivers these services through its wallet app on iPhones, the banking infrastructure is currently managed by Goldman Sachs.

Upon the initial launch of the Apple Card in 2019, Goldman Sachs CEO David Solomon participated in a grand Apple launch event at its California campus. However, the collaboration has encountered challenges in recent years as Goldman Sachs, under the leadership of CEO David Solomon, scaled back its earlier consumer banking aspirations due to escalating costs. Additionally, Goldman has come under regulatory scrutiny for its handling of refunds and billing errors, along with allegations of gender discrimination in credit limit determinations.

At the beginning of this year, Goldman Sachs announced its intention to explore “strategic alternatives” for its consumer banking business. For Apple, the credit card and savings accounts serve as a means to enhance the value and features of its iPhone while also contributing to the expansion of its rapidly growing services business through associated fees. The current status regarding whether Apple has secured a new partner or is contemplating significant adjustments to its financial products in the event of ending the agreement with Goldman Sachs remains unclear.

“Apple and Goldman Sachs are committed to offering an exceptional experience for our customers, assisting them in leading healthier financial lives. The acclaimed Apple Card has been well-received by consumers, and we remain dedicated to innovation, delivering the finest tools, and services for them.” The earlier report on Apple’s proposal was featured by the Wall Street Journal. A representative from Goldman Sachs declined to provide any comments.

Source: CNBC