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Goldman Sachs CEO Says Contract With Apple May End Early

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Goldman Sachs CEO David Solomon said that there's "some possibility" the company's Apple Card partnership with Apple could end early, reports Reuters. Goldman Sachs and Apple have a contract that is supposed to last until 2030, but the financial services company wants to get out of consumer banking and out of its deal with Apple.

Apple Card Balance
Back in November 2023, a report from The Wall Street Journal suggested that Apple was aiming to stop working with Goldman Sachs in the next 12 to 15 months. The 12 month mark has already passed, and 15 months is coming up at the end of February, but there hasn't been recent news on the dissolving of the partnership.

Apple partnered with Goldman Sachs for the ‌Apple Card‌ and the Apple Savings account, so Apple needs to find a replacement partner for these services before it can move on from Goldman Sachs.

Goldman Sachs initially approached American Express about taking over the deal, but the ‌Apple Card‌ needs to run on the Mastercard network until 2026 because of a prior contract. Apple held discussions with Synchrony Financial and Capital One, but those talks seem to have ended. As of September 2024, Apple was reportedly in talks with JPMorgan Chase about an ‌Apple Card‌ takeover, but establishing a deal could take months.

Goldman Sachs has faced customer service issues and customer complaints over the ‌Apple Card‌ and Apple Savings account, which ultimately led to an investigation by the U.S. Consumer Financial Protection Bureau. Customers were unhappy with long wait times for disputed ‌Apple Card‌ transactions and issues with transferring money from the Apple Savings account, and Apple is not happy with the poor customer service reputation its financial products have as a result.

Tags: Apple Card Guide, Goldman Sachs

Top Rated Comments

vertsix Avatar
vertsix
16 months ago

No one seems eager to work with Apple on the Apple Card. I’m just curious why? Anyone?
Simple. Because the app is great and encourages you to pay off your stuff, so no interest. Also, no fees. And to top it off, most people with Apple Card are pretty responsible with their finances. This trifecta makes banks HATE Apple Card.

Apple really up-ended and smack-jabbed banks with the card, be-ridding a lot of the unethical aspects of credit cards and credit card companies.
Score: 13 Votes (Like | Disagree)
2
2761216
16 months ago
Visa would be much better as that'd mean I could use mine at Costco as well.
Score: 12 Votes (Like | Disagree)
sw1tcher Avatar
sw1tcher
16 months ago

Outside of insurance companies, and Big Pharma (with every ad comically reciting all the possible side effects), I can't think of anyone who advertises more than Capital One. How Goldman is losing money on the Apple Card,...
Goldman Sachs is losing money (or at best making a teeny tiny profit) on the Apple partnership because they (GS) were too eager to get into the consumer banking business and gave Apple terms so favorable ('https://forums.macrumors.com/threads/apple-reportedly-in-discussions-with-banks-to-launch-apple-card-in-india.2393917/page-2?post=32274970#post-32274970') and one-sided that no other sane bank would have.

For instance, Goldman Sachs gets zero from swipe fees ('https://forums.macrumors.com/threads/apple-card-savings-account-receives-another-rate-increase.2415503/?post=32832789#post-32832789'). Then there was the rush for Goldman to approve almost as many people as they could ('https://forums.macrumors.com/threads/goldman-sachs-wants-to-end-apple-partnership-american-express-might-take-over.2394712/page-12?post=32291900#post-32291900') to get ahold of them as a customer, where over 25% of them are sub-prime. The result? Higher than average default and delinquency rates ('https://forums.macrumors.com/threads/latest-apple-card-promo-offers-6-daily-cash-back-at-walgreens-and-duane-reade.2440133/?post=33489450#post-33489450') and where the credit card loan loss rate is the worst ('https://forums.macrumors.com/threads/report-delves-into-why-apple-and-goldman-sachs-want-to-break-up.2396884/?post=32339669#post-32339669') among U.S. credit card issuers.


🤦‍♂️

https://www.reuters.com/business/finance/goldman-sachs-ceo-says-apple-card-partnership-may-end-before-2030-2025-01-15/

The Apple card dragged down Goldman's return on equity by 75 to 100 basis points last year, but "that will improve in 2025 and 2026," he added.

The business is housed within Goldman's platform solutions unit, which posted an $859-million annual net loss in 2024.
Score: 11 Votes (Like | Disagree)
Rychiar Avatar
Rychiar
16 months ago
love my Apple Card. no issues
Score: 11 Votes (Like | Disagree)
J
JouniS
16 months ago

Simple. Because the app is great and encourages you to pay off your stuff, so no interest. Also, no fees. And to top it off, most people with Apple Card are pretty responsible with their finances. This trifecta makes banks HATE Apple Card.

Apple really up-ended and smack-jabbed banks with the card, be-ridding a lot of the unethical aspects of credit cards and credit card companies.
Banks will happily do business with financially responsible customers. They are not cartoon villains, just amoral profit maximizers.

Apple Card is simply a bad product from any bank's perspective. Either the fees are too low or the rewards are too high (or Apple takes too large share of the revenue) to make it viable with the customer base it has. If you want to make it profitable, you need to increase the fees and/or lower the rewards. But then you get bad publicity and the product becomes less attractive.
Score: 8 Votes (Like | Disagree)
Justin Cymbal Avatar
Justin Cymbal
16 months ago
I hope that JPMorgan Chase does in fact take over the Apple Card portfolio

I’ve had my Apple Card for a couple of years now and it really is a great card to be able to use on a daily basis

Everywhere I go, pretty much every business takes Apple Pay so I’m able to get the 2% cash back on pretty much all of my purchases and I hope that continues with whichever bank takes over the Apple Card business

I just recently found out that if you use your titanium Apple Card at the Apple retail store, you also get 3% so you don’t have to use Apple Pay on purchases made at the Apple retail store (in order to get the 3% cashback) the titanium Apple Card works at the Apple retail store which is really cool
Score: 8 Votes (Like | Disagree)
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