Goldman Sachs, the issuing bank of Apple Card, is in active discussions to end its partnership with Apple’s fintech endeavors. The news is courtesy of a recent report from The Wall Street Journal.
Per the report, Goldman Sachs and American Express are in talks that would see the latter take over the issuance and management of Apple Card, Apple Savings account, and Apple Pay Later, which recently launched and is supported by Goldman Sachs and the Mastercard Installments program.
Sources warn that talks between Goldman Sachs and Amex are still early, as any potential agreement between the two “isn’t imminent or assured.” The report alleges that the talks have been going on for months and that Apple is aware of the discussions. Even if a deal was to be struck soon, it won’t be finalized for the foreseeable future, as Apple has the ultimate say on whether Goldman Sachs can go ahead and transfer Apple’s fintech duties to Amex.
The talks are part of a wider initiative within Goldman Sachs which would see the bank offloading its entire consumer banking business, transforming into a “full-service bank.” As part of the initiative, Goldman Sachs is also looking to offload its General Motors partnership to Amex or other issuers, adds the report.
Apple and Goldman Sachs began their partnership in 2019 with the launch of the Apple Card. The credit card integrates directly with the user’s Apple ID and the Wallet app on their iPhone, offering no fees of any kind. The physical card is made out of titanium and doesn’t include any personal information bar the holder’s name as a privacy precaution. Apple Card also offers Daily Cash back rewards, which users can opt to transfer to a high-yield Apple Savings account with an APY of 4.15%
Apple Card is still only limited to the United States nearly four years after its launch, but that could change soon as the company has reportedly held talks to launch the credit card and Apple Pay in India.