Apple ends credit card partnership with Goldman Sachs
Apple in April introduced a high-yield deposit account, which offers an annual percentage yield higher than what Goldman offers for an online savings account at its digital consumer bank, Marcus.
Apple intends to conclude its association with global investment bank Goldman Sachs concerning the Apple Card within the next 12 to 15 months, as per a report by The Wall Street Journal.
The iPhone manufacturer has submitted a proposal to Goldman Sachs, requesting the termination of their partnership, encompassing the credit card launched in 2019 and the savings account introduced this year. Goldman Sachs presently issues the Apple Card and manages the company's savings accounts. Reports suggest that the collaboration has encountered challenges, with speculation that Goldman Sachs explored transferring the Apple Card to American Express. Both Apple and Goldman Sachs have not yet commented on the report.
In August, Apple announced that the high-yield savings account by Goldman Sachs associated with the Apple Card had accumulated over $10 billion in deposits since its April launch.
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The savings account offers a high-yield annual percentage yield (APY) of 4.15 per cent. The partnership, initially extended through 2029 as part of Goldman Sachs' strategy to expand its consumer franchise, has faced difficulties, prompting Apple's proposal to end the contract.
Since the introduction of the savings feature, 97 per cent of customers have opted to have their Daily Cash automatically deposited into their accounts, promoting healthy savings habits.
Apple Card, integrated into the iPhone's Wallet, has redefined the credit card experience by simplifying the application process, eliminating fees, minimizing interest payments, ensuring privacy and security, and offering Daily Cash rewards on every purchase.
Apple also launched its "buy now, pay later" service in the United States earlier in the year through the Mastercard Installments program, with Goldman serving as the issuer of the Mastercard payment credential.
(With input from agencies)