Apple Seeks to Terminate Partnership with Goldman Sachs for Credit Card and Savings Account Services

         

Apple is looking to end its credit-card partnership with Goldman Sachs within the next 12 to 15 months, potentially severing one of the most prominent bank-tech company collaborations.

Introduction

Apple has reportedly proposed terminating its partnership with Goldman Sachs for the provision of credit-card and high-yield savings account services within the next 12 to 15 months. This move, if materialized, would mark the conclusion of a significant collaboration between a tech giant and a major banking institution, requiring Apple to seek a new financial partner for its popular Apple Card.

Background on the Partnership

Goldman Sachs and Apple entered into a partnership to launch the Apple Card in 2019, with Goldman Sachs providing the banking infrastructure for the credit card and savings accounts offered through Apple’s wallet app. However, the partnership has encountered challenges, including Goldman Sachs scaling back its consumer banking operations under CEO David Solomon, regulatory scrutiny, and gender discrimination allegations related to credit limits determination.

Implications of the Potential Termination

Should the termination proceed, Apple would be compelled to secure a new financial partner for its credit card and savings accounts, aimed at enhancing the iPhone user experience and bolstering its services business. The company has not disclosed whether it has identified an alternative partner or if it plans to make significant changes to its financial products in the event of severing ties with Goldman Sachs.

Responses from Apple and Goldman Sachs

An Apple representative expressed the company’s commitment to delivering exceptional tools and services to its customers and noted the positive reception of the Apple Card. On the other hand, a Goldman Sachs representative declined to comment on Apple’s proposal to terminate the partnership. CNBC’s Leslie Picker and Steve Kovach contributed to the report.

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