(Reuters) – Apple is pulling the plug on its credit card partnership with Goldman Sachs Group, the Wall Street Journal reported on Tuesday.
The tech giant recently sent a proposal to the Wall Street bank to exit the contract in the next 12 to 15 months, the report said, citing people briefed on the matter. Apple and Goldman had started to roll out a virtual credit card in 2019.
The exit would cover their entire consumer partnership, including the savings account rolled out this year, the report added.
The iPhone maker, when asked about the report, said: “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.”
Goldman declined to comment.
Apple in April introduced a high-yield deposit account, which offers an annual percentage yield higher than what Goldman offers for an online savings account at its digital consumer bank, Marcus.
The partnership, which was a part of the bank’s larger strategy to grow its consumer franchise, was extended a year ago through 2029, the report added.
Apple launched its “buy now, pay later” (BNPL) service in the United States earlier in the year, enabled through the Mastercard Installments program, the company said at the time, adding that Goldman was the issuer of the Mastercard payment credential.
(Reporting by Pritam Biswas and Arsheeya Bajwa in Bengaluru; additional reporting by Stephen Nellis; Editing by Arun Koyyur, Sherry Jacob-Phillips and Lincoln Feast.)
