The tag-team of Goldman Sachs and Apple Card was supposed to be a fruitful alliance, but it appears that the partnership has soured beyond repair, to the point that the contractual agreement between the two entities will dissolve way before the inked time. According to the CEO of the financial institution, Goldman Sachs is expected to end its deal with Apple much earlier.
Goldman Sachs had the Apple Card housed in its platform solutions unit, a business arm that reported an annual net loss of $859 million in 2024
As reported by Reuters, Goldman Sachs’ Chief Executive David Solomon mentioned in a statement made on Wednesday that the Apple Card will not be offered as a product to customers in the near future. Solomon told analysts during an earnings call that Apple is in contract with the bank to run the partnership until 2030, but there is a possibility that the agreement will not continue to that point. To remind readers, the Apple Card and Goldman Sachs were already going through a tumultuous phase, and the bank was searching for every loophole possible to get out of the deal.
As for why this was the case, an executive was previously reported to have regretted the Apple Card deal, as it created immeasurable losses for Goldman Sachs. In 2022, it was estimated that the multinational investment bank lost $1.2 billion, with the firm spending around $350 to acquire a customer. According to the newest figures, Goldman Sachs’ platform solutions unit posted an $859 million net loss in 2024, with Apple Card being a part of the product portfolio. Solomon added that the Apple Card dragged down the bank’s equity return by 75 to 100 basis points last year, but that is expected to improve in 2025 and 2026.
Now, the Apple Card needs to find a new banking partner to continue providing a slew of services to customers, with a previous report stating that JPMorgan Chase could fill that void, but there would be some conditions involved, such as paying less than the $17 billion full face value of Apple Card cardholders’ in outstanding balances. Of course, talks between the Cupertino technology giant and other banking firms could already be happening behind closed doors, and if anything positive materializes, we will be sure to update our readers, so stay tuned.
News Source: Reuters
Follow Wccftech on Google to get more of our news coverage in your feeds.
