Apple Card News Update: Apple's Departure from Goldman Sachs in Credit Card Venture

Apple is considering ending the partnership with Goldman Sachs, affecting Apple Card users.

Nov 29, 2023 - 01:05
Nov 29, 2023 - 01:06
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Apple Card News Update: Apple's Departure from Goldman Sachs in Credit Card Venture
Apple's Departure from Goldman Sachs in Credit Card Venture

Summary

Apple and Goldman Sachs teamed up to make the Apple Card, a special kind of card for your iPhone. But now, there's news that Apple might stop working with Goldman Sachs. If that happens, it could mean changes to how you use your Apple Card and savings on your iPhone. It's like when friends decide to do things differently. Keep an eye out for updates on ishookfinance.com to see what happens next!

Key Highlights

  • Apple proposes ending the credit-card partnership with Goldman Sachs.

  • Potential termination within 12 to 15 months.

  • Indicates a big ending to an important bank and tech company partnership.

Apple is actively considering the termination of its collaboration with Goldman Sachs in the credit-card and savings account realm. A reliable source close to the matter revealed that Apple has submitted a proposal, suggesting an exit within the coming 12 to 15 months. If materialized, this decision would mark the end of a noteworthy alliance between a technology giant and a financial institution. Apple Posted on X about ending its partnership with Goldman Sachs.

This potential separation would necessitate Apple to embark on a quest for a new financial partner to handle its esteemed credit card, the Apple Card, and the associated high-yield savings accounts under the Apple brand. Despite both services being seamlessly accessible through the wallet app on iPhones, the intricate banking operations are currently under the purview of Goldman Sachs.

The grand unveiling of the Apple Card in 2019 witnessed the attendance of Goldman Sachs CEO David Solomon at an opulent Apple event hosted at its California campus.

Apple and Goldman Sachs

However, recent times have witnessed strains in this partnership. Under the leadership of CEO David Solomon, Goldman Sachs has reconsidered its earlier consumer banking aspirations due to surmounting costs. The bank has also found itself under regulatory scrutiny, particularly concerning its handling of refunds and billing errors, and facing allegations of gender discrimination in determining credit limits.

Earlier this year, Goldman Sachs publicly acknowledged its contemplation of "strategic alternatives" for its consumer banking division.

For Apple, the Apple Card and associated savings accounts play a pivotal role in enhancing the iPhone user experience and contribute significantly to the expansion of its services business through associated fees. The question of whether Apple has identified a new partner or is contemplating substantial changes to its financial products in the event of a dissolution of the agreement with Goldman Sachs remains shrouded in uncertainty.

An Apple spokesperson emphasized, “Apple is dedicated to providing an outstanding experience for our customers to empower them to lead financially healthier lives. The Apple Card, which has earned accolades from consumers, will continue to be a focal point for innovation as we strive to deliver top-notch tools and services.

Also Read: Australia Set to Regulate Digital Payments, Including Apple and Google Pay

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