Apple and Goldman Sachs are reportedly ending their partnership over the Apple Card credit card. The Wall Street Journal reported on November 22, 2023, that Apple has sent a proposal to Goldman Sachs that would end their partnership within the next 12 to 15 months.
The Apple Card was launched in 2019 and was initially seen as a success. However, the card has reportedly been losing money for Goldman Sachs, which is why Apple is looking for a new partner.
The Wall Street Journal reported that Apple’s demands for high approval rates and a single billing date for all customers have also been a source of friction between the two companies.
Apple has not yet announced its plans for the Apple Card after its partnership with Goldman Sachs ends. However, the company has said that it remains committed to its financial services business.
What This Means for Apple Card Customers
It is unclear what this means for Apple Card customers at this time. Apple has said that it will continue to support the Apple Card, but it is possible that there could be changes to the card or its terms and conditions in the future.
Apple Card customers should keep an eye out for updates from Apple and Goldman Sachs in the coming months.
What This Means for the Financial Services Industry
The end of the partnership between Apple and Goldman Sachs is a significant development in the financial services industry. It is a sign that even big tech companies like Apple are facing challenges in the financial services sector.
The end of the partnership could also lead to more consolidation in the financial services industry. Goldman Sachs could look to partner with another tech company, or it could try to go it alone in the credit card business.
It is also possible that Apple could partner with a more traditional financial institution, such as a bank. This would allow Apple to tap into the expertise and resources of a traditional bank, which could help Apple to improve the Apple Card and make it more profitable.
The end of the partnership between Apple and Goldman Sachs is a reminder that the financial services industry is constantly evolving. It is important for companies to be able to adapt to change in order to survive and thrive.
