In a development reported by The Wall Street Journal on Tuesday, Apple is set to sever ties with Goldman Sachs Group for its credit card venture. Sources familiar with the matter reveal that the tech giant has approached the Wall Street bank with a proposal to conclude the collaboration over the next 12 to 15 months.
The collaboration, which debuted in 2019, introduced a virtual credit card. However, the impending termination will extend beyond this to encompass their entire consumer partnership, including the savings account launched earlier this year, as outlined in the report.
In April, Apple rolled out a high-yield deposit account that boasts a superior annual percentage yield compared to Goldman’s online savings account under its digital consumer bank, Marcus.
The collaboration, initially slated to extend through 2029, was part of Goldman Sachs’ strategy to broaden its consumer base. The termination comes just a year after the partnership was extended, the report adds.
Sources familiar with the matter say that Apple is to continue with its credit card. What remains to be seen is whether Apple partners up with a banking institution or not.
Earlier this year, Apple made waves with the introduction of its “buy now, pay later” (BNPL) service in the United States, facilitated through the Mastercard Installments program. Notably, Goldman was identified as the issuer of the Mastercard payment credential at the time.
The Apple Card, designed as a digital-first credit card primarily for use through Apple Pay on devices like the iPhone, iPad, and Apple Watch, is set to see a complete dissolution of its partnership with Goldman Sachs.
The physical Apple Card, known for its titanium construction and absence of visible card details, offers cashback rewards, zero fees, and spending insights through the Wallet app on iOS devices.
Interested users can apply for the Apple Card via the Wallet app on their compatible Apple devices in select countries.
(With inputs from agencies)