**Apple proposes to end its credit-card partnership with Goldman Sachs**
**Apple and Goldman Sachs Partnership**
According to a person familiar with the matter, Apple has proposed to end its credit-card and savings account partnership with Goldman Sachs within the next 12 to 15 months. This proposed move would effectively terminate one of the most high-profile partnerships between a bank and a tech company.
**Implications of the Move**
Ending this partnership would mean that Apple would need to find a new financial partner for its popular credit card, Apple Card, and its high-yield savings accounts offered under the Apple brand. While Apple offers both its credit card and savings account through the wallet app on iPhones, the banking backend is currently handled by Goldman Sachs.
When Apple initially launched the Apple Card in 2019, Goldman Sachs CEO David Solomon was present at a glitzy Apple launch event held at its California campus. However, the partnership has been rocky lately, as Goldman Sachs, under CEO David Solomon, has backed away from its previous consumer banking ambitions due to accumulating costs.
**Challenges Faced by Goldman Sachs**
Goldman Sachs has also faced scrutiny from regulators over refunds and billing errors and has been under investigation for alleged gender discrimination when determining credit limits. Earlier this year, Goldman Sachs announced that it would “consider strategic alternatives” for its consumer banking business.
**Apple’s Stake in the Partnership**
For Apple, the credit card and savings accounts serve as a means to add value and additional features to its iPhone. It also supports its rapidly growing services business with fees. However, it is not yet clear whether Apple has found a new partner or would consider larger changes to its financial products if the agreement with Goldman Sachs were to end.
An Apple representative told CNBC, “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.” The proposal from Apple was previously reported by the Wall Street Journal. A Goldman Sachs representative declined to comment on the matter.
It remains to be seen how this proposed move will impact both Apple and Goldman Sachs. The termination of this partnership would have significant implications for both companies as they continue to navigate the rapidly evolving landscape of financial products and services. CNBC’s Leslie Picker and Steve Kovach contributed to this story.