Four years after collaborating on an Apple credit card, Apple and Goldman Sachs may be calling it quits, according to a Wall Street Journal report. Apple suggests that the firms terminate their agreement within the next 12 to 15 months, despite the fact that they recently extended it until 2029.
Despite the fact that the couple opened a high-yield savings account in April of this year, Goldman probably won’t be too upset if they split up. There were rumours last month that the bank wanted to exit the consumer loan market. It even went so far as to inform Apple early this year that it wanted to terminate the contract and that it would prefer to take over American Express’s operations.
In addition, Goldman recently finalised preparations to dissolve its other credit card relationship with General Motors and made arrangements to sell home improvement lending company Green Sky. Essentially, Goldman attempted to broaden its clientele beyond business and extremely rich individuals, possibly deducting billions of dollars before getting back to basics. The bank informed staff members that layoffs would result in a loss of one year’s pay.
“Apple and Goldman Sachs are focused on providing an incredible experience for our customers to help them lead healthier financial lives,” an Apple spokesman stated in a statement to CNBC. Customers have responded favourably to the highly regarded Apple Card, and we will keep innovating and providing the greatest products and services for them.”
The relationship between Apple and Goldman was never ideal for either business or customer. A push for mass application acceptance and the payment schedule were among the things that infuriated Goldman employees. However, according to The Information, customers complained that the bank’s customer service was terrible, with staff lecturing them and transfers taking a long time.
Apple’s credit card and high-yield savings account are not guaranteed to survive. The two work for Apple’s services division, which is witnessing revenue growth in contrast to a decline in overall sales. The company Synchrony Financial, which collaborates with PayPal and Amazon, has been considering taking over Goldman’s position. When the company first bid on the programme, it was competing with Goldman.
