Apple is reportedly ending its partnership with Goldman Sachs

The collaboration between Apple and Goldman Sachs on an Apple credit card might be reaching its conclusion, according to The Wall Street Journal. Despite extending their contract until 2029 recently, Apple is reportedly considering terminating the agreement within the forthcoming 12 to 15 months, four years after the partnership’s initiation.

Even though Goldman and Apple unveiled a high-yield savings account in April this year, a potential split might not greatly disappoint Goldman. Recent reports insinuated that the bank was contemplating an exit from the consumer lending sphere. In fact, Goldman mentioned to Apple earlier this year about its desire to withdraw from the contract and even approached American Express to manage operations on its behalf.

Green Sky and plans to end its other credit card partnership with General Motors. Basically, Goldman tried to diversify outside of corporate and very wealthy clients, potentially writing off billions of dollars before returning to basics. The bank told employees that any layoffs would include one year’s salary.

In a statement to CNBC, an Apple representative said:

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 alliance between Apple and Goldman was never perceived as ideal for either the parties involved or the customers. Issues such as the payment schedule and the drive for mass application approval were a source of frustration for Goldman employees. Moreover, customers accused the bank’s customer service of being highly unsatisfactory. They faced issues like delayed transfers and unnecessary lectures from representatives, as reported by The Information.

The fate of Apple’s credit card and high-yield savings account hangs in the balance. These services constitute a part of Apple’s portfolio that is experiencing an increase in revenue, despite a decrease in overall sales. Synchrony Financial, a firm that collaborates with Amazon and PayPal, has been looking into the opportunity to replace Goldman in this partnership. It’s worth noting that Synchrony Financial had initially competed against Goldman for this program.