Apple Card, the company's branded credit card, was launched back in 2019. It's offered through the wallet app on iPhones and despite the Apple branding, it wasn't Apple handling the banking end of things, it was Goldman Sachs.
It's now being reported that Apple's partnership with Goldman Sachs is about to end. This leaves the future uncertain for the Apple credit card, which has become one of the pillars in Apple's services business now.
Goldman Sachs also interested in breaking up
This possible breakup between Apple and Goldman Sachs comes as a surprise since both companies had recently extended their agreement until 2029. Apple also launched a high-yield savings account in April this year, with Goldman Sachs handling the banking end of things for that account as well.
CNBC hears that Apple has proposed the end of this partnership to Goldman Sachs within the next 12 to 15 months. This isn't something that's going to bother the investment banking giant too much. There were already reports that it wants to exit the consumer lending business.
Some reports even mention that Goldman Sachs had itself told Apple earlier this year that it wanted to exit the partnership. The investment bank also approached American Express to take over the banking operations for the Apple credit card.
If this partnership falls through, it's unclear what the future will hold for Apple's credit card and high-yield savings account. There aren't any reports about which financial institution the company would partner with once Goldman Sachs exits.
For its part, Apple isn't signaling that the credit card would cease to exist. In a statement provided to the scribe, the company says that “The award-winning Apple Card has seen a great reception from consumers, and we will continue to innovate and deliver the best tools and services for them.”
Some reports suggest that Synchrony Financial, which had originally bid against Goldman Sachs to run Apple's credit card program, might be interested in taking over the role.
