Apple is Reportedly Planning to End Goldman Sachs Partnership on Apple Card

Apple is reportedly planning to end its partnership with Goldman Sachs for its Apple Card and high-yield savings account. According to the Wall Street Journal citing sources familiar with the matter, Apple recently sent the bank a proposal to end their contract within the next 12 to 15 months.

“The exit would cover their entire consumer partnership, including the credit card the companies launched in 2019 and the savings account rolled out this year. It couldn’t be learned whether Apple has already lined up a new issuer for the card,” the report says.

Apple first launched its Apple Card in preview in the US back in 2019. While the card is still only available in the US, it can be used to make payments worldwide and it uses Mastercard as its payment network. The card integrates with Face ID, Touch ID, and Apple Pay, it doesn’t come with any fees, and it also lets users earn Daily Bash back with every purchase.

Back in April, Apple also launched a high-yield saving account for Apple Card users. All Daily Cash rewards can be automatically deposited into that account, which offers a 4.15 percent APY and has no fees or minimum balance requirements.

While the Apple Card offers many benefits to iPhone users in the US, the partnership has been costly for Goldman Sachs. Back in January, the bank said that it had lost approximately $3 billion on its consumer lending business since 2020.

According to the WSJ, Goldman Sachs has been in discussions with American Express to let the company take over the costly partnership with Apple. “Amex expressed concern about several aspects of the program, including its loss rates, and it isn’t clear if those discussions have continued,” the WSJ wrote.

While the future of the Apple Card is unclear, an Apple spokesperson sent a reassuring statement to CNBC. “Apple and Goldman Sachs are focused on providing an incredible experience for our customers to help them lead healthier financial lives,” the Apple representative said. “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.”