According to reports from the Wall Street Journal (WSJ), Apple might be cutting ties with the contract that includes the Apple Card and its savings program within the next year or so.
There have been talks before that Goldman Sachs, Apple’s partner in this venture, was looking for a way out of the deal. The WSJ found documents suggesting that Goldman Sachs has been facing some big losses with the Apple Card program.
Apple, though, has been pretty positive about the Apple Card’s reception among consumers. They told CNBC that people are loving it and that they’re committed to keeping up the innovation, making sure they offer the best tools and services to their customers.
What happens next is a bit up in the air
If this contract gets dropped, it’s unclear what will happen to the Apple Card and its linked savings account. There’s no word on whether Apple has found another partner to take Goldman’s place.
Word is, Goldman has talked with American Express about maybe passing on the Apple Card to them. Also, Synchrony Financial, a big player in the credit card game in the USA, is considering taking over the Apple Card. They handle cards for a bunch of major names like Amazon and PayPal.
There’s also a possibility that Apple might want to handle its financial stuff in-house. They’re apparently working on their own payment systems under a project called Project Breakout. Looks like they want more control over their financial services down the road.
This relationship between Apple and Goldman Sachs goes back to 2019 when they launched the Apple Card together. Those fancy titanium cards connected to the Apple Wallet, letting users track their spending in real-time. Plus, the Apple Card doesn’t have fees, gives cashback every day, and has pretty low interest rates.
This whole thing’s happening while both Apple and Goldman Sachs are going through some changes in leadership. The team behind the Apple Card at Apple is now led by Eddy Cue after Peter Stern’s departure. And Goldman Sachs just appointed Marc Nachmann to head their Consumer Banking unit. They signed a four-year deal in 2019, which was supposed to be extended next year, according to WSJ.
READ MORE: Germany’s New Energy Regulations Ease Concerns, Impact on Consumers Explored
