Companies Apple a Goldman Sachs are reportedly ending their partnership, four years after they joined forces in the area Apple credit cards Card. Although the two companies recently extended their agreement until 2029, Apple is now proposing contract termination in the next 12 to 15 months.
Although the two companies launched a high-interest savings account in April this year, it is likely that Goldman will not suffer much from the eventuality. Last month, there were reports that the bank was looking to get out of the consumer lending business, and earlier this year it went so far as to tell Apple that it would like to get out of the deal.
Goldman also recently agreed to sell home loan company Green Sky and plans to end another credit card partnership with General Motors. So Goldman seems to be basically trying to steer outside of corporate and very wealthy clients.
Apple and Goldman partnership never it was not ideal for both companies or consumers. Goldman employees were frustrated by the responsibilities, which included, for example, the payment schedule and the pressure to approve applications in bulk. Conversely, customers reported that the bank’s customer service was a nightmare, including delayed transfers and being lectured by its representatives.
The future of the high-interest Apple credit card and savings account is insecure. The two services are part of Apple’s services sector, which has seen rising revenue compared to declining overall sales. Synchrony Financial, which works with Amazon and PayPal, has been exploring taking over Goldman’s role.