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Is the Apple Card dead? Not really, even if Goldman Sachs leaves

Reports suggest that Apple does not intend to discontinue the Apple Card or the associated Savings account.

Published onNovember 29, 2023

Stock photo of Apple Card Savings account next to Apple Card and bills 11
Edgar Cervantes / Android Authority
  • According to reports, Apple has sent Goldman Sachs a proposal for a potential exit from their Apple Card partnership.
  • This proposal could take over 12 to 15 months to terminate the partnership, which would have otherwise lasted until 2019.
  • A different report suggests Apple does not intend to discontinue the Apple Card, even if Goldman Sachs exits.

The Apple Card has been one of Apple’s more ambitious projects yet, as it forays into the domain of financial products, an area in which Apple does not have particular expertise. So, it made a lot of sense when Apple announced that it was launching the Apple Card in partnership with Goldman Sachs in 2019.

But over the recent months, Goldman Sachs has wanted to exit this partnership (and its other credit card tie-ups), as all of it proved costlier than expected. A report from Bloomberg suggested that the firm reported $1 billion in pretax loss in 2021 and about $2 billion in 2022, most of which were tied to the Apple Card. It was even in talks with American Express to take its place in the partnership.

Apple has now offered Goldman Sachs a potential exit, per a report from The Wall Street Journal. The Cupertino-based company has sent a term sheet to its partner as a first step towards terminating their partnership. This proposal’s negotiation and termination process could still take 12 to 15 months, while the partnership itself would have lasted till 2029.

The Apple Card could be in jeopardy, with Goldman Sachs potentially out of the picture. However, Bloomberg suggests Apple doesn’t intend to discontinue the Apple Card or the associated savings account, irrespective of Goldman Sach’s exit. However, Apple hasn’t gotten to the point of talking to other firms that could replace Goldman.

Apple gave the following statement to CNBC:

Apple and Goldman Sachs are focused on providing an incredible experience for our customers to help them lead healthier financial lives. 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.

Apple’s statement barely addresses the future of the Apple Card and Apple’s partnership with Goldman Sachs. Apple Card remains vital to the company’s ecosystem, as it pulls consumers deeper into using Apple Pay and the Wallet app.

Most Apple Card users are unlikely to be aware that Goldman Sachs handles the backend of their card. So, the company’s exit will unlikely affect them unless Apple discontinues the card or the card network changes.

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