According to multiple reports, Apple is seeking to end its partnership with Goldman Sachs, which would result in the termination of its Apple card joint venture and savings account. The tech giant has given a 12-15 month exit plan to the investment bank, as reported by The Wall Street Journal.
Users are now curious about the future of their Apple Card. One user posted on Twitter, formerly known as X, asking, “So what happens to my Apple Card? Does it automatically transfer to a new partner bank?”
In August 2019, Apple and Goldman Sachs launched a new credit card to help consumers lead a healthier financial life, which offers features such as no fees, daily cash back, and seamless integration into Apple’s mobile devices.
In April 2023, Apple and Goldman Sachs also launched a savings account for Apple Card users.
However, the partnership between Apple and Goldman Sachs has reportedly encountered problems, and the split has been in the works for a while. Apple’s concerns around engineering have contributed to this. Goldman Sachs executives even approached American Express to explore the possibility of ending the partnership earlier this year, according to The Wall Street Journal.
What Does it Mean for the Accounts?
Goldman Sachs is currently still responsible for the Apple Card, and its employees will need to prepare for transferring balances to the company or companies that take over the cards, a process that requires experienced employees. It is still unclear whether Apple has lined up a new issuer for the card.
According to Peter C. Earle, an economist for the American Institute for Economic Research, customers have little reason to worry. He believes that another financial institution will likely take over the business from Goldman Sachs. He points out that Goldman’s venture into retail consumer lending has been shaky, with problems in the Apple partnership and the recent sale of their home improvement lending operation.
American Express has expressed concerns about the program’s loss rates, and it is uncertain if discussions with Goldman Sachs have continued. Synchrony Financial, which initially bid against Goldman for the Apple credit card program, has also shown interest in taking over the program, as reported by The Wall Street Journal.
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