Apple’s partnership with Goldman Sachs, pivotal to the Apple Card and Savings Account, is ending. This significant shift, set to occur over the next 12-to-15 months, signals a new direction in Apple’s financial services strategy, according to a new report by The Wall Street Journal.
Goldman Sachs, facing financial hurdles with the Apple Card partnership, has scaled back its consumer finance ambitions due to significant losses as a result of the partnership. Back in January of this year, Bloomberg reported that Goldman Sachs faced a loss of $1.2 Billion within a period of just nine months. Apple, on its part, remains committed to innovating for Apple Card customers.
Apple plays a dominant role in this partnership, suggesting Goldman Sachs’s request likely led to the dissolution. Discussions about transferring the program to American Express have occurred, amid concerns over loss rates. Synchrony Financial, known for its wide range of credit services, is also a potential contender for the Apple Card business.
In parallel, Apple is working on ‘Project Breakout’ to develop its payment processing technology, indicating a move towards more financial independence and less reliance on partners like Goldman Sachs.
The end of this partnership marks a big change for Apple in the finance sector. The company’s next steps, whether forming new partnerships or enhancing in-house capabilities, will reshape consumer interaction with financial products in the tech industry.
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Image: The Wall Street Journal
