Tech giant Apple set to break ties with Goldman Sachs for credit card business
29 Nov 2023
Apple has decided to terminate its credit card partnership with banking giant Goldman Sachs. Apple had sent a proposal to the Wall Street Bank to end the contract in the next 12 to 15 months. No concrete reason has been provided for this decision. There has been no confirmation of an end to the partnership from Goldman Sachs. Apple and Goldman introduced a credit card together in 2019.
It has been reported that this exit would cover their entire consumer partnership. This includes the savings account that the firms launched earlier this year.
Apple stated that they and Goldman Sachs are dedicated to offering an exceptional experience for their customers, aiming to assist them in leading healthier financial lives. The company mentioned that the award-winning Apple Card has received positive feedback from consumers, and they expressed their commitment to ongoing innovation and the delivery of top-notch tools and services for their customers.
Apple had also introduced a high-yield deposit account in April 2023. This account provides a higher annual percentage yield than what Goldman offers at its digital consumer bank, Marcus.
The Apple and Goldman Sachs partnership was extended a year ago until 2029. The bank aims to grow its consumer base with this partnership, but now that Apple has decided to pull out of the deal, it will be interesting to note what the Wall Street bank will do next.
Apple introduced a “buy now, pay later” (BNPL) service in the U.S. in the first half of 2023. This service was enabled through the MasterCard Installments program and the company stated that Goldman Sachs was the issuer of the MasterCard payment credential.