Wesley Hilliard
Goldman Sachs and Apple seem likely to part ways by early 2025, but a vague statement from Apple provides little reassurance to existing Apple Card customers.
Nothing is set in stone, but after months of complaints from Goldman Sachs, Apple has sent a proposal to the bank to end their partnership in 12 to 15 months. The proposal hasn't been made public and no successor has been named.
Apple provided a statement to AppleInsider and other publications on the matter. However, it was vague and didn't provide any new information.
"Apple and Goldman Sachs are focused on providing an incredible experience for our customers to help them lead healthier financial lives. 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."
Apple's message should provide some peace of mind to existing Apple Card and Apple Savings customers. While it doesn't really say much, the fact Apple said anything at all is a good sign.
If a product is expected to be phased out or replaced, Apple tends to stay silent about it. Apple's financial services are expected to shift from Goldman Sachs to another firm.
Discussions have allegedly been held with American Express, and Synchrony Financial has also shared interest in taking over. However, whatever bank Apple chooses next will likely not offer as many freedoms for the company as Goldman Sachs.
Issues arose with the partnership from the start, with Apple stating Apple Card didn't come from a bank, demanding that all bills be due at the start of the month, and increased regulatory scrutiny. Goldman Sachs has made it clear that it intends to withdraw completely from consumer banking.
Apple Card and Apple Savings should remain operational throughout this transition, and anything otherwise will be communicated by Apple. For now, everything will continue to work as it has since Apple Card debuted in 2019.
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42 Comments
For me, the attraction is the app experience. I will say that the AmEx app experience is a close second. I don’t see why Apple would make any demands around payment dates, late fees, etc. — the integration into Wallet, Daily Cash, and 2%/3% using Apple Pay is plenty. I would like to see built in insurance/buyer protection. Charge an annual fee if you have to.
"Apple and Goldman Sachs are focused on providing an incredible experience for our customers." TV and fitness show that they're willing to spend so much money and take many years. Hopefully financial services succeeds. It's not quite there for me yet but I look forward to Apple continuing to develop this.
Goldman Sachs apparently claim that they have lost billions of dollars on this venture. I'm not sure how this is possible. If the claim was that they'd lost billions of dollars in profits, I'd understand, but to actually lose money seems nonsensical. Surely they worked out adequate running costs to ensure that they'd at the very least break even?
The due date of the bills is not relevant as some cards already allow you to pick your own payment due date. It’s significantly easier to know a bill is always due on the 1st.