Tech giant Apple Inc. (AAPL.O) has reportedly decided to sever ties with Goldman Sachs (GS.N) in their credit card partnership. Reports indicate that Apple recently submitted a proposal to Goldman Sachs, signaling its intention to exit the contract within the next 12 to 15 months. The collaboration, which began in 2019 with the introduction of a virtual credit card, will encompass their entire consumer partnership, including a savings account launched earlier this year.
Apple, known for its commitment to enhancing user experiences, stated that both companies remain focused on providing customers with an exceptional financial journey to promote healthier financial lives. The widely acclaimed Apple Card, which received positive feedback from consumers, will continue to be a platform for innovation as Apple strives to offer cutting-edge tools and services.
April saw Apple expanding its financial services by introducing a high-yield deposit account, featuring an annual percentage yield surpassing that of Goldman’s online savings account at its digital consumer bank. The partnership, initially part of Goldman’s strategy to strengthen its consumer franchise, had been extended just a year ago, now slated to run through 2029.
Despite the conclusion of the Apple-Goldman collaboration in the credit card realm, Apple remains an active player in the financial sector. Earlier this year, the company unveiled its “buy now, pay later” (BNPL) service in the United States. Enabled through the Mastercard Installments program, Goldman continues to serve as the issuer for the Mastercard payment credential associated with this service.
As the financial landscape undergoes shifts, Apple’s strategic decisions reflect its adaptability and commitment to providing innovative solutions in the dynamic world of consumer finance. The termination of the partnership marks a turning point in Apple’s financial ventures, signaling a focus on evolving consumer needs and market trends.
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