Apple Dropping Goldman Sachs as Credit Card Partner
Goldman Sachs and Apple partnered to launch the Apple Card back in 2019. Now Apple has revealed that it will end the partnership, according to The Wall Street Journal. Apple plans to stop working with Goldman Sachs in the next 12 to 15 months, but it is not yet clear if they have a new credit card issuer lined up.
Goldman Sachs has also been trying to scale back its struggling credit card business, so this is not a big surprise. Goldman Sachs said earlier this year that they were in talks with American Express about a possible takeover for the Apple partnership, but the Apple Card needs to run on the Mastercard network until 2026 due to a deal established between Apple and Goldman Sachs. Synchrony Financial is another option.
Goldman Sachs was new to consumer banking when the Apple Card launched. In order to land the Apple Card deal, it is not collecting fees that many credit card issuers receive. Goldman Sachs does earn money from loans issued to cardholders who split Apple purchases into installments.
Despite their recent struggles, Apple and Goldman Sachs introduced earlier this year long-promised high-yield savings account.
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