Apple is looking to pull the plug on its Apple Card / Apple Savings partnership with Goldman Sachs, ending the Wall Street bank’s bid to expand into consumer lending.
AnnaMaria Andriotis for The Wall Street Journal:
The tech giant recently sent a proposal to Goldman to exit from the contract in the next roughly 12 to 15 months, according to people briefed on the matter. 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.
The tech giant recently sent a proposal to Goldman to exit from the contract in the next roughly 12 to 15 months, according to people briefed on the matter. 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… Goldman has discussed with American Express the possibility of handing over the program to the card giant. Amex expressed concern about several aspects of the program, including its loss rates, and it isn’t clear if those discussions have continued. Synchrony Financial has also been looking into the possibility of taking over the credit-card program, some of the people said…
The move would mark a swift about-face for a program that just over a year ago was extended through 2029 and was intended to serve as a pillar of Goldman’s main-street ambitions.
For Goldman, the partnership was a big part of its failed bid to diversify beyond businesses serving big corporate and investor clients and the ultrarich, and its demise is the final big step back from the failed experiment. Goldman is now turning back to focusing on those core clients.
MacDailyNews Take: Doesn’t inspire us to consider Goldman’ Marcus savings accounts, that’s for sure. Apple will be just fine with a new, less skittish, more seasoned, and more reliable banking partner.
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Nice spin by MDN. It’s GS that wants out. They can’t make any money with Apple’s deal. GS has lost a ton of money and can’t afford to be Apple’s bank. There will not be many who are lined up to lose money just to be with Apple.
Wrong, dumb ass.
CNBC: Apple is trying to unwind its Goldman Sachs credit card partnership
Barron’s: Apple Moves to End Goldman Sachs Card Partnership
WSJ: Apple Pulls Plug on Goldman Credit-Card Partnership
Bloomberg: Apple Offers Exit Ramp to Goldman
it’s possible that both want out, but I’m leaning towards GS being the one that wants it more based on another article with links to other supporting articles.
https://arstechnica.com/information-technology/2023/11/report-apple-and-goldman-sachs-are-breaking-up-over-money-losing-apple-card/
The reports some weeks ago were that Goldman wanted out. Knowing Apple they have the upper hand in the deal. In any case the interest rate needs to go up, like their dividend…
Goldman was no old man at knowing when to hold ‘em and knowing when to fold ‘em. Sounds like old man Goldman was too young. Sad. Their loss
The real issue is Apple has created a card system that makes managing your expenses favorable to the user. No hidden fees. Clear cut payment options. Genuine honesty and upfront information has never been a core aspect to the success of these old timer financial institutions.
It’s time Apple put their money into this as a product moving service. Much like Mac OS being free (on a Mac) Apple could finance its own savings program that would continue to delight Apple users and keep them in the walled garden they’re already delighted to stay in.