According to a Wall Street Journal report on Tuesday, Apple is ending its credit card collaboration with Goldman Sachs Group GS.N. According to people familiar with the situation, the tech behemoth has proposed to the Wall Street bank that the agreement be terminated within the next 12 to 15 months.
In 2019, Apple and Goldman Sachs launched a virtual credit card.
According to the report, the termination would apply to their entire consumer partnership, including the savings account introduced earlier this year.
In April, Apple launched a high-yield deposit account at Marcus, its digital consumer bank, that offers a higher annual percentage yield than Goldman’s online savings account.
The collaboration, which was part of the bank’s broader strategy to expand its consumer base, was extended just a year ago and is now set to last until 2029, according to the report.
Earlier this year, Apple launched its “buy now, pay later” (BNPL) service in the United States, which was made possible by the Mastercard Installments program. At the time, the company stated that Goldman was the issuer of the Mastercard payment credential.
The Apple Card is a digital-first credit card that is intended to be used primarily with Apple Pay on Apple devices such as the iPhone, iPad, and Apple Watch. The physical Apple Card is made of titanium and does not have any visible card numbers, CVV, expiration date, or signature. It provides cashback rewards, has no fees, and provides spending insights via the iOS Wallet app. In select countries, users can apply for the Apple Card using the Wallet app on their compatible Apple devices.