After years of collaboration, Apple and Goldman Sachs are set to end their partnership. According to a report from The Wall Street Journal, Apple plans to end the partnership within the next 12 to 15 months.
What happened between Apple and Goldman Sachs?
The report from The Wall Street Journal states that Apple plans to end the partnership with Goldman Sachs within the next 12 to 15 months. Additionally, no clear replacement has yet emerged to take over Goldman Sachs' role as the issuer of Apple's credit cards, Apple Card.
The end of the contract between the two companies will result in the discontinuation of services such as Apple Card, Apple Cash, and Apple Pay Later.
Some previous reports have suggested that Goldman Sachs was trying to persuade American Express to replace it in the agreement with Apple. American Express is not the only company that has been contacted about this, as Goldman Sachs has also reached out to Synchrony Financial, a US-based financial services company.
It is worth noting that Apple Cards must continue to work normally on the Mastercard network until 2026. Therefore, it is unlikely that Apple will agree to have its new partner be American Express or Synchrony Financial. So far, there have been no clear indications about the latest developments in the agreement between Apple and Goldman Sachs or the replacement that will save Apple from this problem.
However, all of the financial services that Apple offers are still operating normally. Experts expect them to gain widespread acceptance in the United States in the coming period.
How did the problems between the two parties start?
The partnership between Apple and Goldman Sachs began in 2019. The goal of the partnership was to launch Apple's credit card in the United States. After that, the two parties decided to launch other financial services together. However, what happened was disappointing! Many problems arose related to customer service, an increase in the time it takes to resolve disputed card issues. Some problems also arose related to Apple's savings accounts. In addition to the limited returns of those many services for Goldman Sachs.
The end of the partnership between Apple and Goldman Sachs is a significant development in the financial services industry. It remains to be seen what the long-term implications of this decision will be for both companies.