Goldman Sachs CEO Says Contract With Apple May End Early

[MacRumors]

Goldman Sachs CEO David Solomon said that there's "some possibility" the company's Apple Card partnership with Apple could end early, reports Reuters. Goldman Sachs and Apple have a contract that is supposed to last until 2030, but the financial services company wants to get out of consumer banking and out of its deal with Apple.

Back in November 2023, a report from The Wall Street Journal suggested that Apple was aiming to stop working with Goldman Sachs in the next 12 to 15 months. The 12 month mark has already passed, and 15 months is coming up at the end of February, but there hasn't been recent news on the dissolving of the partnership.

Apple partnered with Goldman Sachs for the Apple Card and the Apple Savings account, so Apple needs to find a replacement partner for these services before it can move on from Goldman Sachs.

Goldman Sachs initially approached American Express about taking over the deal, but the Apple Card needs to run on the Mastercard network until 2026 because of a prior contract. Apple held discussions with Synchrony Financial and Capital One, but those talks seem to have ended. As of September 2024, Apple was reportedly in talks with JPMorgan Chase about an Apple Card takeover, but establishing a deal could take months.

Goldman Sachs has faced customer service issues and customer complaints over the Apple Card and Apple Savings account, which ultimately led to an investigation by the U.S. Consumer Financial Protection Bureau. Customers were unhappy with long wait times for disputed Apple Card transactions and issues with transferring money from the Apple Savings account, and Apple is not happy with the poor customer service reputation its financial products have as a result.

Article Link: Goldman Sachs CEO Says Contract With Apple May End Early

 

[jz0309]

So a MC deal til 2026 and the GS deal til 2030 - sounds like a lot of time still but seems clearer than ever that GS wants out.
Sure hope the successor will not be Amex.

My experience with the card has been nothing but positive.

 

[Justin Cymbal]

I hope that JPMorgan Chase does in fact take over the Apple Card portfolio

I’ve had my Apple Card for a couple of years now and it really is a great card to be able to use on a daily basis

Everywhere I go, pretty much every business takes Apple Pay so I’m able to get the 2% cash back on pretty much all of my purchases and I hope that continues with whichever bank takes over the Apple Card business

I just recently found out that if you use your titanium Apple Card at the Apple retail store, you also get 3% so you don’t have to use Apple Pay on purchases made at the Apple retail store (in order to get the 3% cashback) the titanium Apple Card works at the Apple retail store which is really cool

 

[Rychiar]

love my Apple Card. no issues

 

[guzhogi]

Pardon my ignorance: if they switch to another company, what happens with the savings accounts? Will customers have to take the money out, then put it back in, or what?

 

[msackey]

I hope that JPMorgan Chase does in fact take over the Apple Card portfolio

I’ve had my Apple Card for a couple of years now and it really is a great card to be able to use on a daily basis

Everywhere I go, pretty much every business takes Apple Pay so I’m able to get the 2% cash back on pretty much all of my purchases and I hope that continues with whichever bank takes over the Apple Card business

I just recently found out that if you use your titanium Apple Card at the Apple retail store, you also get 3% so you don’t have to use Apple Pay on purchases made at the Apple retail store (in order to get the 3% cashback) the titanium Apple Card works at the Apple retail store which is really cool

Yes, I too have enjoyed the features of the Apple Card (and Apple Savings). I'd like to continue to have all those features regardless whom the next bank is. That said, I don't want the network to switch to anything else other than either maintain it with MasterCard or move to VISA. Both MasterCard and VISA are much more widely accepted (and used) in other parts of the world than AMEX. Even then, in the US, there are smaller businesses that don't take AMEX. I don't want that. The Apple Card has bee my primary daily credit card.

 

[SactoGuy18]

I think JP Morgan Chase is likely going to take over the Apple Card due to their known international presence. I almost suggested Capital One but they're not well-known outside the USA.

 

[Justin Cymbal]

Goldman Sachs initially approached American Express about taking over the deal, but the Apple Card needs to run on the Mastercard network until 2026 because of a prior contract

Being forced to run on the Mastercard network until 2026 is a big caveat. Mastercard is currently only 25% of the overall card market share versus 61% for Visa:

Visa, MasterCard market share U.S. 2007-2024 | Statista

Visa's U.S.

www.statista.com

 

[2761216]

Visa would be much better as that'd mean I could use mine at Costco as well.

 

[entropys]

American Express not a good option outside USA, although come to think of it that isn’t really a problem for the Apple Card

 

[anakin44011]

I think JP Morgan Chase is likely going to take over the Apple Card due to their known international presence. I almost suggested Capital One but they're not well-known outside the USA.

I think Capital One needs to do more advertising. And yes, I'm kidding.

Outside of insurance companies, and Big Pharma (with every ad comically reciting all the possible side effects), I can't think of anyone who advertises more than Capital One. How Goldman is losing money on the Apple Card, yet Capital One has all this extra money to spend on TV advertising of all things...I can't say I understand this end of the banking industry.

 

[ThankYouRob]

Pardon my ignorance: if they switch to another company, what happens with the savings accounts? Will customers have to take the money out, then put it back in, or what?

After reading the article, I have the same question...I'd guess thats how it would have to work? I've honestly never been in this type of scenario!

 

[MacAddict1978]

I think JP Morgan Chase is likely going to take over the Apple Card due to their known international presence. I almost suggested Capital One but they're not well-known outside the USA.

I can't see JP Morgan Chase playing ball with the Apple card as it is today - that no late fee is going to be a deal breaker for every bank. JPMC and Amex are my two hopes because they have the best rewards cards out there, but expect major changes.

I also wouldn't mind an upgraded Apple card with annual fee as an option in addition to a no fee card for better
rewards. The only negative I've had with Apple's card is the rewards structure.

If you want a high yeild savings option, then forget JPMC. Amex and Discover are the only two big credit card banks that offer high yeild savings.

Capital One is the WORSE bank and credit card issuer. You can have perfect credit and they want to give you a $1000 limit and they think a generous increase if $100 bucks. They have lost almost all their cobranded card accounts for good reason as well.

 

[arkitect]

Visa would be much better as that'd mean I could use mine at Costco as well.

How curious.
I am often flummoxed by the US's card rules and regulations.

Here in the UK if a shop or restaurant accepts Visa then they pretty much 100% accept Mastercard as well.
The only red-haired stepchild of the industry is Amex, and even that is changing.

I just recently found out that if you use your titanium Apple Card at the Apple retail store, you also get 3% so you don’t have to use Apple Pay on purchases made at the Apple retail store (in order to get the 3% cashback) the titanium Apple Card works at the Apple retail store which is really cool

I would hope so! 🙂
Unless I am missing something here, why wouldn't Apple's card work at Apple's own stores?

 

[GMShadow]

Pardon my ignorance: if they switch to another company, what happens with the savings accounts? Will customers have to take the money out, then put it back in, or what?

After reading the article, I have the same question...I'd guess thats how it would have to work? I've honestly never been in this type of scenario!

GS will likely still maintain their Marcus platform, which has identical rates to the Apple Savings accounts - my guess is customers will be offered the choice between rolling their funds over into a Marcus HYSA, or withdrawing their funds.

American Express not a good option outside USA, although come to think of it that isn’t really a problem for the Apple Card

My guess is that Apple does want to expand the Card in the future, once they can get things worked out with a partner.

 

[cocky jeremy]

Visa would be much better as that'd mean I could use mine at Costco as well.

What? They don't take all of the major 4?

 

[akasian]

Is there any possiblity that Apple themselves becomes a banking institution and provides the credit card and savings account themselves? Apple has always been about controlling the whole widget. They also have a large cash hoard.

 

[HJM.NL]

No one seems eager to work with Apple on the Apple Card. I’m just curious why? Anyone?

 

[GMShadow]

No one seems eager to work with Apple on the Apple Card. I’m just curious why? Anyone?

The Apple Card runs on calendar billing, which results in most of the support calls being in the first week of the month, and then far less for the rest. GS doesn't like this from a support cost perspective.
Apple didn't let them charge late fees - banks don't like this from a revenue perspective.

Goldman's figures on their end were done with the thought of automating/outsourcing most of the disputes and support needs, which wasn't realistic, which meant their cost structure was thrown off.

 

[JustSomeInfo]

Chase won't give me a credit card because of a delinquency some 20 years ago. I have an Apple Card. I wonder what would happen if Chase took over.

 

[vertsix]

No one seems eager to work with Apple on the Apple Card. I’m just curious why? Anyone?

Simple. Because the app is great and encourages you to pay off your stuff, so no interest. Also, no fees. And to top it off, most people with Apple Card are pretty responsible with their finances. This trifecta makes banks HATE Apple Card.

Apple really up-ended and smack-jabbed banks with the card, be-ridding a lot of the unethical aspects of credit cards and credit card companies.

 

[CarlJ]

I just recently found out that if you use your titanium Apple Card at the Apple retail store, you also get 3% so you don’t have to use Apple Pay on purchases made at the Apple retail store (in order to get the 3% cashback) the titanium Apple Card works at the Apple retail store which is really cool

Okay, now I'm curious - what are the circumstances under which you would be buying something at the Apple Store and not want to use Apple Pay? I have a titanium Apple Card, but it's still in the box, never used.

 

[HJM.NL]

The Apple Card runs on calendar billing, which results in most of the support calls being in the first week of the month, and then far less for the rest. GS doesn't like this from a support cost perspective.
Apple didn't let them charge late fees - banks don't like this from a revenue perspective.

Goldman's figures on their end were done with the thought of automating/outsourcing most of the disputes and support needs, which wasn't realistic, which meant their cost structure was thrown off.

Thanks for explaining 👍🏻

 

[2761216]

What? They don't take all of the major 4?

Costco keeps changing the networks from time to time. Used to be MC Amex but changed to Visa the last few years. No other cards accepted in store.

 

[HJM.NL]

Simple. Because the app is great and encourages you to pay off your stuff, so no interest. Also, no fees. And to top it off, most people with Apple Card are pretty responsible with their finances. This trifecta makes banks HATE Apple Card.

Apple really up-ended and smack-jabbed banks with the card, be-ridding a lot of the unethical aspects of credit cards and credit card companies.

Thanks for the explanation 😊