A couple of months ago we learned the bad news that the banking entity Goldman Sachs wanted to end the contract it had signed with Apple to invest in Apple Card, the Cupertino company’s credit card. Apparently, the business has not been very profitable for Goldman Sachs.
Now we have learned that Apple will agree to end its association with Goldman Sachs. According to reports from The Wall Street Journal, Apple has sent a proposal to the investor to exit the operation starting in the next 12 to 15 months.
In addition, Apple has spoken out on the matter. According to the company led by Tim Cook, Apple Card has been very well received by consumers and they will continue to innovate to offer the best services. Continue reading to discover more details.
Goldman Sachs will stop investing in the Apple Card
The possible exit of Goldman Sachs makes the future of the Apple Card uncertain. The bank made a large investment to launch the Apple credit card and, since then, they have lost a large amount of money on the partnership.
It’s been more than 4 years since the official launch of Apple Card and the credit card still hasn’t left the United States. And I may never do it. Goldman Sachs collaborated to provide support for the Apple Card payments system, the infrastructure necessary for Apple Pay Later, and Apple Cash savings account services for its consumers. Now the fate of the Apple Card is up in the air.
After the news became public about the possible end of the association between Apple and Goldman Sachs, from the signing of the bitten apple logo they wanted to share a statement to the press:
“Apple and Goldman Sachs are focused on delivering an incredible experience for our customers and helping them lead healthier financial lives. The award-winning Apple Card has been well received by our consumers, and we will continue to innovate to provide them with the best tools and services.”
Rumors suggest that Goldman Sachs tried to delegate the Apple Card program to American Express. But they rejected the offer due to concerns about potential financial losses. Other possible candidates include Syncrony Financial, Barclays and Discover. Although Apple is also working on the necessary infrastructure for its payment system.
But it’s not all bad news for Apple Pay, Tap to Pay has recently been launched in France and could soon expand to Spain and other countries. Tap to Pay offers the possibility of making mobile payments between two iPhone units and other smartphones without the need to use a dataphone.