Apple is breaking up with Goldman Sachs, leaving Apple Card fate in limbo

According to a new report in the Wall Street Journal, Apple has requested to end its partnership with Goldman Sachs on all consumer-facing financial services. That means Apple Card and the newer Apple Card Savings accounts. The article cites “people briefed on the matter” in saying that Apple has sent a proposal to Goldman to end the partnership within the next 12-15 months.

If you’re wondering where that leaves customers with an Apple Card or Apple Card Savings account, nobody really knows. Typically, another credit card issuer would come in and take over the partnership. The WSJ says it does not know if Apple has anyone else in mind, but that American Express was approached last year by Goldman about taking over the business. AMEX was apparently concerned about a number of details, and it’s not known if those talks continued or not. Synchrony Financial, the largest issuer of branded store credit cards in the U.S., has reportedly shown interest as well.

Apple has also dabbled in the financial sector itself, most recently with Apple Pay Later, which splits purchases into four equal payments over four weeks. That service is backed by an Apple subsidiary called Apple Financing LLC.

The Apple Card has been a drain on Goldman Sachs, which was trying to build out its consumer footprint. The Apple Card has fewer fees than traditional credit cards and Apple reportedly pushed for “nearly all applicants to get approved,” according to the Journal.

Obviously, your Apple Card is not going to instantly stop working one day without ample warning, nor will you be unable to pay your bill, resulting in loss of credit rating. There are regulations about this sort of thing. But it is possible that within the next year or two the benefits, rates, and rewards for Apple Card could change.

Source : Macworld