Apple proposes to end its collaboration with Goldman Sachs for the credit card, affecting their joint ventures involving the card and savings account.
Goldman Sachs has decided to terminate its collaboration with Apple regarding the Apple credit card, resulting in a reported loss exceeding $1 billion for Goldman Sachs last year. The partnership, initiated in 2019, introduced a virtual credit card, and the termination, proposed by Apple, is expected to occur within the next 12 to 15 months.
This conclusion will encompass their entire consumer partnership, including a savings account launched earlier this year. In April, Apple introduced a high-yield deposit account offering a higher annual percentage yield than Goldman’s online savings account through its digital consumer bank, Marcus.
The collaboration, part of Goldman’s strategy to expand its consumer base, was extended just a year ago, now spanning through 2029. Despite this, the recent decision signals the end of this comprehensive partnership.
Apple’s move away from Goldman Sachs follows the introduction of its “buy now, pay later” (BNPL) service in the United States earlier this year, facilitated through the Mastercard Installments program. During this launch, Apple specified that Goldman was the issuer of the Mastercard payment credential.
The Apple Card, a digital-first credit card designed for use primarily through Apple Pay on Apple devices, offers unique features such as a titanium physical card with no visible card number, CVV, expiration date, or signature. It provides cashback rewards, has no fees, and offers spending insights through the Wallet app on iOS devices. Interested users can apply for the Apple Card through the Wallet app on compatible Apple devices in select countries.
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