Daisy Watts
Nov 29, 2023
Apple has announced to put an end to its credit card partnership with Goldman Sachs Group four years after it heavily touted the joint efforts.
Offering credit card and savings account with Goldman, the iPhone maker recently sent a term sheet to the Wall Street Journal to wrap up the partnership.
As it was extended till 2029 a year ago, the splitting partnership marks the first step towards severing the contract, according to a WSJ report.
In April this year, Apple launched a high-yield deposit account that provides an annual percentage yield, which is more than what Goldman provides for an online savings account through its digital consumer bank, Marcus.
The two companies had also bragged this year in August that the savings account program had reached $10 billion in US deposits, Reuters reported.
The savings account program also faced criticism from certain users who faced difficulty while withdrawing cash. In an interview in June, Apple CEO Tim Cook explained that the issue was caused by a security system designed to prevent fraud.
The tech giant said, "Apple and Goldman Sachs are focused on providing an incredible experience for our customers to help them lead healthier financial lives. The award-winning Apple Card has seen a great reception from consumers, and we will continue to innovate and deliver the best tools and services for them."
Apple introduced its "buy now, pay later" (BNPL) offering in the United States earlier this year. This service was facilitated through the Mastercard Installments program, with Goldman issuing the Mastercard payment credential, as stated by the company at the time of launch.
In an official statement, Apple said we’re “Focused on providing an incredible experience for our customers to help them lead healthier financial lives.”
Regardless of Goldman’s involvement, the iPhone maker remains committed to its Apple Card credit card and savings account and doesn’t plan to discontinue the products.
The bank is in talks with American Express (AXP.N) to take over its Apple credit card and other ventures with the tech giant, the report added, citing people familiar with the matter.
