Apple Ending Apple Card Partnership With Goldman Sachs

[Ismeon]

that would be pretty wild if they just got rid of the Apple Card altogether.

there HAS to be someone willing to take it on lol, but we’ll see.

Yeah, I totally agree. Someone else in this thread said it best, if Apple initiated this plan then they more than likely have something in place. I can't imagine them walking away from the AppleCard, even more so because of the 0% Financing they have tied to it.

 

[Ethosik]

Good. Now please go back to making hardware and software, that’s what you do the best, you were never meant to be a bank. Nor a movie producer, but we’ll wait for that one to play out in due time

Uhhhh Apple Silicon Macs? Vision Pro coming out? People need to understand that businesses have decisions and departments. This is the same about people complaining about watch bands. Those employees are not working on M4 processors. Nor do I want them to.

 

[GeminiFan]

Apple is ending its credit card partnership with Goldman Sachs, according to The Wall Street Journal. Apple plans to stop working with Goldman Sachs in the next 12 to 15 months, and it is not yet clear if Apple has established a new partnership for the Apple Card.

Apple and Goldman Sachs will dissolve their entire consumer partnership, including the Apple Card and the Apple Savings account. Apple in a statement that was provided to CNBC said that it will continue to provide "the best tools and services" for Apple Card customers.Rumors earlier this year suggested that Goldman Sachs wanted to get out of its relationship with Apple as part of a plan to cut back on its consumer business. Goldman Sachs at the time was said to be speaking with American Express about a possible takeover, but the Apple Card needs to run on the Mastercard network until 2026 due to a deal established between Apple and Goldman Sachs. Amex also had concerns about aspects of the program such as loan loss rates due to Apple's push to have customers approved, so the status of the talks is not known.

Synchrony Financial, known as the largest issuer of store credit cards, has considered taking over the Apple Card, according to The Wall Street Journal.

Goldman Sachs and Apple have worked together on the Apple Card since it launched in 2019, and have also teamed up for the high-yield Apple Savings account and the Apple Pay Later feature. The partnership has not gone smoothly, with Goldman Sachs running into customer service issues due to long wait times for disputed Apple Card transactions and issues with the Apple Savings account.

The U.S. Consumer Financial Protection Bureau launched an investigation into Goldman Sachs due to the customer complaints, leading to tension with Apple. Apple is unhappy with the customer service reputation of its Apple Card and Apple Savings products, while some Goldman Sachs executives blame Apple for the regulatory scrutiny.

Goldman Sachs was new to consumer banking when the Apple Card launched, and to establish a deal with Apple, it is not collecting fees that many credit card issuers receive. The bank does not get a cut of the fee that merchants pay to Apple to accept the Apple Card, nor is it able to collect annual fees, late fees, or foreign transaction fees. Goldman Sachs does earn money from loans issued to cardholders who split Apple purchases into installments, but it is not known if Apple will be able to establish a similar deal with another issuer because of the limited revenue the Apple Card provides.

Article Link: Apple Ending Apple Card Partnership With Goldman Sachs

Well this really only affects a small number of Apple clients and only those who live in the USA, and they are only a small part of the overall client base. So it is no big deal.

 

[Ethosik]

Welp time for a bank run. Once I get my interest payment tomorrow I'm closing the savings account. It was fun while it lasted.

Why not just wait and see what Apple does? Unless you have more than 250k in it (which you shouldn’t have anyway) you are insured in case something bad happens.

 

[Ethosik]

Hope it is not American Express! I will walk if it is. Love my Apple Card and the discounts plus the interest on my savings account. Will be hard to replace them but I know Apple will do something to keep the system going. It likely will not be a good as what we have now but then the 3% went away months ago!

Agreed! Why does everyone want American Express? I can count on one hand the number of places I deal with that accept AMEX.

 

[dwaite]

You mean everyone who didn't know how or care to get higher yields through Treasuries, corporate bonds, municipal bonds, etc.

Not really equivalent - I can get my money out of the savings account quickly and without penalties

 

[Ethosik]

I hope that Apple Card continues via another banking company. Apple Card has completely changed my credit profile. The intuitive wheel-based interface for making payments that is baked into Apple Wallet is like nothing else of which I am aware. I know at a glance how much I have to pay and by when to avoid finance charges. The interface is a bit like a gamification of handling one's finances. Just by using Apple Card everywhere that I can that doesn't charge an additional fee for credit card payments, I've managed to earn about $1,000.00 in instant cashback that is paid out nightly. I don't have to worry about having a certain minimum to cash out, or cashing out in increments. Now, with the Apple Savings account feature, I can funnel my cash back rewards into a 4.15% savings account to earn additional money. Sure, it's not the highest yielding savings account out there, but the brilliance of it is that it's automatic, and it's still a competitive rate. Earning 2% cashback on all contactless payments is another huge plus. As a result, I use my Apple Watch to make payments everywhere I can.

I'm not a paid spokesperson for Apple Card, and I'm sure that there are other companies that offer compelling credit product solutions. Apple Card is the one that has clicked best for my personal finance management.

Agreed. I have three credit cards but Apple Card uses 98% of my transactions. It’s just so easy to deal with and as much as I buy Apple stuff I prefer those benefits. I have spent about $15,000 in 4 years with just Movies and TV shows and subscriptions like Apple One etc.

 

[wigby]

Good. Now please go back to making hardware and software, that’s what you do the best, you were never meant to be a bank. Nor a movie producer, but we’ll wait for that one to play out in due time

They never were a bank or movie producer. Apple works with banks and producers to help deliver content and experiences to Apple customers. They are doing exactly what they've always done and what you want them to do - make hardware and software. The only thing you neglect to mention is that Apple customers don't buy hardware and software for the sake of it. They buy Apple hardware and services for content or to solve a problem. The only way for Apple to control the experience (and profit further) is to also control the content and services that are delivered. They are doing the most Steve Jobs thing you can possibly do.

 

[ThomasJL]

Goldman Sachs is extremely unethical. Tim Cook is an MBA, and MBAs generally view a job at Goldman Sachs and McKinsey as the holy grail of employment. MBAs generally adore Goldman. The fact that Cook chose to partner with such financial scum shows what corporate scum he is.

 

[1129846]

Not surprised Apple is doing that. It is pretty telling that Apple's deal demands was not that good to the issuers because none of the other major players were willing to accept it. Goldman took a bad deal as they wanted to break into the consumer credit card market and learned some very harsh lessons. Mix that with the clients Apple was bring in was not their Goldman's normal clients/ customers.

Apple credit card is a meh card. It acts like it is much more of a premium card but end of the day it is a meh card. To the lower credit score people amazing card but if you are high income 750+ credit score person it is a meh card and not a premium card.

I say that but I did get the card for Apple cash back but end of the day only gets used for the Apple purchases and a back up card.

Amex made some of this same mistakes back in 2007-2009 going after "lower quality" lower income customers and they got dealt some harsh lessons. They learned from it.

 

[joshwithachance]

I see Goldman was tired of HEMORRHAGING money lol.

 

[SBacklin]

I'm anxiously waiting to see how this plays out. Amex wouldn't be that bad but, not the best given that not all merchants will take it. If it's Synchrony, I'll close the account right away. Synchrony is the worst f'n bank to deal with. I cannot stand them.

Goldman wasn't prepared for the consumer side of this space and that coupled with the terms Apple laid out and the setup, GS couldn't handle it.

 

[jlozoya]

Not surprised Apple is doing that. It is pretty telling that Apple's deal demands was not that good to the issuers because none of the other major players were willing to accept it. Goldman took a bad deal as they wanted to break into the consumer credit card market and learned some very harsh lessons. Mix that with the clients Apple was bring in was not their Goldman's normal clients/ customers.

Apple credit card is a meh card. It acts like it is much more of a premium card but end of the day it is a meh card. To the lower credit score people amazing card but if you are high income 750+ credit score person it is a meh card and not a premium card.

I say that but I did get the card for Apple cash back but end of the day only gets used for the Apple purchases and a back up card.

Amex made some of this same mistakes back in 2007-2009 going after "lower quality" lower income customers and they got dealt some harsh lessons. They learned from it.

Which card should I be using then? I use it for any category my other cash back cards don’t already give me a higher percentage. 2% everywhere isn’t bad.

 

[mecloud]

I would advise that nobody pays their bill until there is an official statement on what the plan for this card is and what will happen to our Apple Card accounts.

Take all your money out of your Apple Card Savings account as well. Immediately.

This is great advice for anyone wanting to destroy their credit scores.

 

[newyorksole]

They can't partner with Amex because they have a contract with mastercard for now... And I'm sure mastercard will make it very expensive to break that (although apple has a lot of money so maybe they will do it)

As far as Chase, Capital One and the other heavy hitters in the consumer space they will not agree to Apple's ridiculous terms like Goldman did.... Because quite frankly they don't need Apple as they're already established...... So for this to happen Apple would have to concede and get in line.

mannn this is going to be interesting! I can’t wait to see what happens lol.

 

[mdriftmeyer]

Goldman Sachs is extremely unethical. Tim Cook is an MBA, and MBAs generally view a job at Goldman Sachs and McKinsey as the holy grail of employment. MBAs generally adore Goldman. The fact that Cook chose to partner with such financial scum shows what corporate scum he is.

Tim Cook is first an Industrial engineer graduate from Auburn University. He made his career in supply chain management and mastering long term contract manufacturing investments.

Apple has teams of researchers on every possible business they look to enter and how they can maintain quality control over products and services,

Goldman Sachs is blaming Apple for the federal scrutiny when they should blame themselves for low quality consumer ratings. How GS fails its customers is exactly why Apple will cut ties with them.

Apple has contingencies in all contracts to protect their customers in all relationships with third party business ventures.

 

[Spaceboi Scaphandre]

Why not just wait and see what Apple does? Unless you have more than 250k in it (which you shouldn’t have anyway) you are insured in case something bad happens.

Given the fact withdraws from Apple Card Savings took a really long time with many customers unable to make payments because they were struggling to get cash out of the savings account, yeah no. I am not leaving my money at the mercy of Goldman Sachs or Apple. I'm getting it out now so I have it ready just in case I need it.

 

[Velin]

Which card should I be using then? I use it for any category my other cash back cards don’t already give me a higher percentage. 2% everywhere isn’t bad.

Citi Double Cash is 2% cash back everywhere, no annual fee. It's 1% on the purchase, 1% when you pay your credit card bill. Just be sure to do a direct deposit of the full 2% (i.e. do not do a statement credit).

 

[Chuckeee]

The new Apple (RED) promo uses the image of a Bank of America Visa card instead of an Apple card

https://www.apple.com/product-red/

https://forums.macrumors.com/thread...le-pay-support-red-through-next-week.2412362/

Is this a hint of things to come?

 

[collin_]

I just really need it to stay a Mastercard with no foreign transaction fees. With that combination you can pull off some... let's just say ✨money-saving magic✨ (yes, I pay $1.12 per month for YouTube Premium using an Argentinian address).

Personally don't use this one but the card also writes off balances of 99 cents for whatever reason so... you can basically get the lowest iCloud storage tier for free using Apple Card.

I'm just a guy, standing in front of a multinational corporation, asking them not to update their credit card network so that I can keep getting dirt cheap YouTube Premium. ❤️

 

[AustinIllini]

Agreed! Why does everyone want American Express? I can count on one hand the number of places I deal with that accept AMEX.

Because AMEX is clearly the best North American credit card distributor.

 

[AustinIllini]

Play out? They won Best Picture for Coda for god’s sake.

Not to mention "Napoleon" was very enjoyable and "Killers of the Flower Moon" was a masterpiece.

 

[dwaltwhit]

SOMEONE will pick this up.

 

[rhett7660]

I just really need it to stay a Mastercard with no foreign transaction fees. With that combination you can pull off some... let's just say ✨money-saving magic✨ (yes, I pay $1.12 per month for YouTube Premium using an Argentinian address).

Personally don't use this one but the card also writes off balances of 99 cents for whatever reason so... you can basically get the lowest iCloud storage tier for free using Apple Card.

I'm just a guy, standing in front of a multinational corporation, asking them not to update their credit card network so that I can keep getting dirt cheap YouTube Premium. ❤️

I hope this stays also... This is what I used when I traveled and loved it!

 

[GeneticBloom]

Agreed! Why does everyone want American Express? I can count on one hand the number of places I deal with that accept AMEX.

Where do you live? I can count on one hand the number of places I have gone that have NOT accepted AMEX. I used it as our main card for two years and have maybe twice had someplace not accept it.