Regarding the Apple Card, Apple is allegedly severing ties with international investment bank Goldman Sachs. According to The Wall Street Journal, the maker of the iPhone has proposed to Goldman Sachs that they end their collaboration in the next 12 to 15 months.
In 2019, Apple introduced its credit card in collaboration with Goldman Sachs, and in March of this year, it opened up its new Pay Later service to customers. Although Apple’s buy now, pay later service is being handled by its own financial division, the company is still collaborating with Goldman Sachs and Mastercard to make the program possible.
The article from late Tuesday stated that “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.”
Currently, Apple Card is issued by Goldman Sachs, which also powers the company’s savings accounts.
However, prior rumors suggested that things were not going well between them, and Goldman Sachs may have considered moving the Apple Card over to American Express.
According to persons briefed on the situation, “the tech giant recently sent Goldman a proposal to exit from the contract in the next roughly 12-to-15 months,” the Wall Street Journal reported.
Goldman Sachs and Apple had not yet responded to the report.
The maker of the iPhone stated in August that since its April introduction, more than $10 billion had been deposited into Apple Card’s high-yield savings account through Goldman Sachs.
The high-yield annual percentage yield (APY) on the Goldman Sachs savings account is 4.15 percent.
97% of users have opted to have their Daily Cash automatically transferred into their account since the debut of Savings, making it simple for users to start and maintain virtuous savings practices.
Apple Card, which is integrated into the iPhone Wallet, has completely changed the credit card experience by streamlining the application process, doing away with all fees, pushing customers to pay less interest, offering Daily Cash on every transaction, and meeting the high standards for privacy and security that Apple is known for.
By increasing the range of services it offers, Apple hopes to extract more value from the millions of people who use its products. Its credit card is integrated with Apple Pay, a tap-to-pay wallet service. Over 75% of iPhone users have already used Apple Pay.
Its collaboration with Goldman had a rough beginning as the two disagreed on product advertising. Apple intended to promote the card as “the most secure credit card ever,” but the bank’s more sensible employees cautioned that using such grandiose language could expose the company to legal action.
“Award-winning Apple Cards have been well received by consumers, and we will continue to innovate and provide them with the finest tools and services possible,” the iPhone manufacturer said in a statement. “The move has not been confirmed.”
Goldman opted not to respond.
A variety of financial services are offered by the financial organization The Goldman Sachs Group, Inc. to businesses, governments, and private citizens globally.
Its segments for Platform Solutions, Asset & Wealth Management, and Global Banking & Markets are how it runs. The Global Banking & Markets division offers relationship lending, acquisition financing, secured lending through structured credit and asset-backed lending, and involvement in resale agreements. Additionally, it offers strategic advisory assignments pertaining to mergers and acquisitions, divestitures, corporate defense activities, restructurings, and spin-offs.
In addition, this division provides underwriting services, mortgages, commodities, currencies, and equity-related products, as well as client execution activities for cash and derivative instruments, credit, and interest rate products.
The Asset & Wealth Management segment invests in corporate equity, credit, real estate, and infrastructure assets in addition to managing assets across a variety of asset classes, such as equity, fixed income, hedge funds, credit funds, private equity, real estate, currencies, and commodities. The segment also offers wealth advisory services, private banking, personalized financial planning, and customized investment advisory solutions.
Credit cards and point-of-sale financing are provided by the Platform Solutions section for the acquisition of goods and services. For corporate and institutional clients, this section additionally offers cash management services like deposit-taking and payment solutions. The headquarters of The Goldman Sachs Group, Inc. are in New York, where it was established in 1869.
