Apple is quietly pointing out a headline The Wall Street Journal which claims the tech giant has “pulled the plug” on its partnership with Goldman Sachs that covers the Apple Card credit card and savings account. Instead, Apple says the two companies remain focused on providing “an incredible experience” to customers, in a statement. However, the Journal reports that is not the case: Citing anonymous sources, it claims that the tech giant sent a proposal to Goldman to exit their partnership in 12 to 15 months.
No such departure has been formally announced at this time, but there have been multiple reports detailing how the partnership had deteriorated over the years, including a July 2023 article from The Information.
That report noted problems Goldman faces with Apple Card, such as how it bypasses traditional forms of credit card revenue, annual fees, late fees and foreign transaction fees. Instead, it earns fees on loans made to cardholders who finance their Apple products in monthly installments. The article also referenced some of the bad public relations he received Apple Card after a viral tweet indicated that some women with good credit were being given worse conditions than their husbands. While regulators found no wrongdoing, the incident left a stain on Apple's reputation.
Later, when Goldman moved away from its consumer strategy, The Wall Street Journal reported that the bank began selling its partnership with Apple to American Express. JPMorgan Chase was also named as another potential partner. The WSJ also points out other problems, such as Apple's insistence that all cardholders be billed at the beginning of the month, causing customer service headaches, and its push to get most cardholders approved. of the applicants.
While Apple does not specifically claim that the WSJ is completely wrong, it issued a statement that leaves room for doubt about the status of the deal:
«Apple and Goldman Sachs focus in providing an incredible experience to our customers to help them lead healthier financial lives," reads a company statement. “The award-winning Apple Card “It has been very well received by consumers and we will continue to innovate and offer them the best tools and services,” Apple said.
The statement could be interpreted in multiple ways. In a readout, Apple says the agreement is still in effect and nothing has changed. In another reading, Apple simply wants to sow doubt about any negotiations it may have underway so as not to cause its current customers to worry that their Apple Mastercard will suddenly become Amex, for example.
Still, it's worth noting that Apple didn't go on record with the WSJ headline, details of its report, or speculation about new partnerships beyond the statement provided. That also leaves room for doubt, as Apple is not being transparent about the specific points the WSJ raises.
Rumors about the possible end of the Apple-Goldman deal have continued to grow in recent months, despite Goldman announcing a year ago that the deal It was extended until 2029. While that doesn't mean there aren't ways for companies to get out of the deal, it does mean there are contractual obligations that would make it difficult for either party to do so. As The Information also reported, Goldman can't just get rid of the business without Apple approval. Additionally, the report noted that Apple also has a deal to run the Apple Card through Mastercard's network until at least 2026. While Apple could partner with another bank, the report set the deadline for unwinding the deal with Goldman at around of 18 months, which is in line with the new WSJ estimates. When there is smoke...
