- Apple and Goldman Sachs rolled out a virtual credit card in 2019.
- It entered into a similar partnership with GM in 2021.
Goldman Sachs is reportedly considering terminating its partnership with Apple for virtual credit cards and other services. The Wall Street giant is also severing its ties with General Motors as it moves towards less reliance on banking partners.
According to the sources familiar with the matter who shared information with the Wall Street Journal, Goldman is holding discussions with American Express to take over the ventures, the Journal reported. According to the publication, Apple is aware of the talks and would have to agree to the transfer.
Apple teamed up with Goldman Sachs in 2019 to launch Apple Card, a credit card service integrated into Apple’s mobile devices. The card features no fees and is praised by the tech firm as a way for customers to analyze their spending and calculate interest savings.
Apple’s Services Revenue
According to the latest financial statements, Apple’s revenue from services, including financial services, has significantly grown. This category now accounts for 20% of the total revenues, compared to approximately 10% ten years ago.
Early this year, Apple said it would partner with Goldman Sachs to offer high-yield savings to the bank’s card customers. Through Apple Card, the new accounts would allow users in the US to open a savings account offering up to 4.15% in interest rates, the two companies announced during the unveiling.
On the other hand, in 2021, General Motors launched a credit card with Goldman Sachs issued by Mastercard. The service was unveiled through Marcus by Goldman Sachs in what was reported to be a $2.5 billion deal. Additionally, the card featured a reward program to let customers earn points and buy cars.
