Apple Card could be switching banks after Goldman Sachs wants out — has it failed?

News
By Daryl Baxter
published

Card declined.

Apple Card held in hand
(Image credit: Christine Romero-Chan / iMore)

If you use Apple Card in the U.S. you may be getting an email soon about who will manage your card instead of Goldman Sachs.

According to the Wall Street Journal (behind a paywall), American Express is in talks with Sachs to take over its side of the deal with Apple, which could be announced over the next few months.

While the card has been touted as a success by Apple, Sachs has reportedly been at the mercy of a probe into its credit card division, which Apple Card is a part of. Sachs revealed in 2022 it had lost $1 billion since Apple Card's launch.

Apple Card was first revealed in 2019 and made available to users in the U.S. in August of that year. You could apply for an Apple 'Credit' Card, and you could use the Wallet app to manage your credit purchases, which Sachs would manage.

With differing takes on the success of the scheme, this then begs the question — was Apple Card simply launched at the wrong time?

No more cashback for Goldman

Apple Card on iPhone and Apple Watch

(Image credit: Apple)

Apple Card was announced before the COVID-19 pandemic had occurred, changing the world for almost two years.

Many users were trying to keep safe during this time, and while Apple and Sachs allowed Apple Card users to defer their March payments in 2020, it was a product of a pre-COVID time.

Also, just like Apple Pay Cash, which allows you to send money to a cash card over iMessage,  Apple Card is still only available in the U.S., with no word of Apple Card coming to the UK and other countries.

Other services similar to Apple Card like Monzo and Starling (which have international reach) have been offering 'buy now, pay later' features where you can spread the payment out over a few months while paying some additional interest. But the Wallet app outside the U.S. still only allows you to use your bank cards, gift cards, and tickets.

So while there may be an opportunity for Apple Card to be available in other countries, it would also be great to see an expansion of it, especially if American Express takes on the mantle from Sachs. Perhaps a debit card could be in the line's future too.

Do you have one? Let us know in the iMore Forums if you've been happy with the Card so far.

Daryl Baxter
Daryl Baxter
Features Editor

Daryl is iMore's Features Editor, overseeing long-form and in-depth articles and op-eds. Daryl loves using his experience as both a journalist and Apple fan to tell stories about Apple's products and its community, from the apps we use everyday to the products that have been long forgotten in the Cupertino archives.

Previously Software & Downloads Writer at TechRadar, and Deputy Editor at StealthOptional, he's also written a book, 'The Making of Tomb Raider', which tells the story of the beginnings of Lara Croft and the series' early development. He's also written for many other publications including WIRED, MacFormat, Bloody Disgusting, VGC, GamesRadar, Nintendo Life, VRV Blog, The Loop Magazine, SUPER JUMP, Gizmodo, Film Stories, TopTenReviews, Miketendo64 and Daily Star.

25 Comments Comment from the forums
  • Just_Me_D
    This article is actually a good read. I’ve maintained for quite some time that businesses are still trying to make up for the loss revenue brought on by the fear of the pandemic.
    Reply
  • 2low_tech
    Not a surprise. GS has been slowly exiting their Consumer Business for a while. Consumer Banking does not have anywhere near the potential returns that Investment Banking and M&A business do.
    Reply
  • FFR
    Apple is probably talking to American Express regardless, for a global roll out.
    Reply
  • EdwinG
    FFR said:
    Apple is probably talking to American Express regardless, for a global roll out.
    If they want to do a global rollout, it would have to be either MasterCard or VISA that they talk to.

    There are very few places where AmEx is accepted outside the USA.
    Reply
  • FFR
    Ed7789 said:
    If they want to do a global rollout, it would have to be either MasterCard or VISA that they talk to.

    There are very few places where AmEx is accepted outside the USA.

    Plenty of places accept and offer American Express all over the world. Much more than Goldman Sachs.
    Reply
  • EdwinG
    FFR said:
    Plenty of places accept and offer American Express all over the world. Much more than Goldman Sachs.
    The Apple Card uses the MasterCard network, which is pretty much universal (where credit cards are accepted).

    To name one chain that doesn’t accept Amex (or Visa for that matter), Costco. They only accept Mastercard (credit) or any debit card (usually Interac).

    Ref.: https://customerservice.costco.ca/app/answers/detail/a_id/1629/~/what-methods-of-payment-does-costco-canada-accept?
    Amex is just a an uncommon credit card.
    Reply
  • FFR
    Ed7789 said:
    The Apple Card uses the MasterCard network, which is pretty much universal (where credit cards are accepted).

    To name one chain that doesn’t accept Amex (or Visa for that matter), Costco. They only accept Mastercard (credit) or any debit card (usually Interac).

    Ref.: https://customerservice.costco.ca/app/answers/detail/a_id/1629/~/what-methods-of-payment-does-costco-canada-accept?
    Amex is just a an uncommon credit card.

    Yes, most banks use either Mastercard or visas platform, and it would be great if Apple Card could use their networks.

    But the rumor is American Express not visa or Mastercard. From my personal experience American Express is accepted and offered all over Europe, south east Asia and the Middle East while Goldman Sachs is not.

    Looks like American Express is also offered in Canada https://www.americanexpress.com/en-ca/
    Perhaps costco would have to revise their policy if the rumors come true or you would have to simply use another card.
    Reply
  • EdwinG
    FFR said:
    Yes, most banks use either Mastercard or visas platform, and it would be great if Apple Card could use their networks.

    But the rumor is American Express not visa or Mastercard. From my personal experience American Express is accepted and offered all over Europe, south east Asia and the Middle East while Goldman Sachs is not.

    Looks like American Express is also offered in Canada https://www.americanexpress.com/en-ca/
    Perhaps costco would have to revise their policy if the rumors come true or you would have to simply use another card.
    Costco moved away from Amex in 2015.

    I’m not saying that Amex is unavailable everywhere. It is very much available, in many places, as long as you’re willing to compromise. What I’m saying is if you want to make Apple Card truly global, you need to be on one of the two major payment networks.

    Also, Goldman Sachs is completely irrelevant in the discussion, aside that they want to leave the consumer services business. That’s their decision, and good for them for making a decision that’s best for them. You can easily substitute GS with RBC, BMO, TD, HSBC, Deutsche Bank, ANZ, or any other bank, and my argumentation still makes sense. Why? Because you can find a ton of banks that are members of MasterCard, VISA or even both payment networks.

    Apple Card is currently MasterCard network card, per Apple themselves: https://support.apple.com/en-ca/guide/apple-card-web-servicing/devb70bc6133/web. By moving to the Amex network, the places where the card is accepted WILL undoubtedly shrink.

    I even discovered through this discussion that it’s even impossible to pay for a transit fare with Amex in the Greater Montréal Area. Only Interac, MasterCard and VISA cards are accepted, as the attached picture of the deployed fare vending machines demonstrates.
    132701
    Apple Card, including Apple Pay Cash, is unavailable in Canada, and it will probably not become available anytime soon. I want to be proven wrong on this.
    Reply
  • FFR
    Ed7789 said:
    Costco moved away from Amex in 2015.

    I’m not saying that Amex is unavailable everywhere. It is very much available, in many places, as long as you’re willing to compromise. What I’m saying is if you want to make Apple Card truly global, you need to be on one of the two major payment networks.

    Also, Goldman Sachs is completely irrelevant in the discussion, aside that they want to leave the consumer services business. That’s their decision, and good for them for making a decision that’s best for them. You can easily substitute GS with RBC, BMO, TD, HSBC, Deutsche Bank, ANZ, or any other bank, and for the discussion to still make sense.

    Apple Card is currently MasterCard network card, per Apple themselves: https://support.apple.com/en-ca/guide/apple-card-web-servicing/devb70bc6133/web. By moving to the Amex network, the places where the card is accepted WILL undoubtedly shrink.

    I even discovered through this discussion that it’s even impossible to pay for a transit fare with Amex in the Greater Montréal Area. Only Interac, MasterCard and Visa cards are accepted, as the attached picture of the deployed fare vending machines demonstrates.
    132701
    Apple Card, including Apple Pay Cash, is unavailable in Canada, and it will probably not become available anytime soon. I want to be proven wrong on this.

    I disagree, Goldman Sachs is very relavent until apple uses someone else.

    Really couldn’t care less who takes Apple Card global, only that they do.

    Since the rumor currently is about American Express. I hope that goes through, space black titanium Apple Card would be .

    I would take the concierge service over the ability to shop at Costco or use the Canadian metro, but that’s just me.
    Reply
  • EdwinG
    FFR said:
    I disagree, Goldman Sachs is very relavent until apple uses someone else.

    Really couldn’t care less who takes Apple Card global, only that they do.
    Since Goldman Sachs Bank operates in the UK and USA only, they would be required to partner with a different bank in other regions anyways.

    FFR said:
    Since the rumor currently is about American Express. I hope that goes through, space black titanium Apple Card would be .
    I would take the concierge service over the ability to shop at Costco or use the Canadian metro, but that’s just me.
    Good for you. No one is going to force you to take the subway. I prefer taking public transit over my car to go downtown, because it costs me 6.50$/day instead of 45-55$ (incl. parking, gas, insurance, taxes and the 2h wasted time round-trip). Looks to me like it really pays by itself 😂.

    I hope your next vacation to Canada will be enjoyable even if your credit card would be refused. I have nothing more to add on Amex’s network.

    I would probably not gotten the Apple Card even if it was offered, unless it would gracefully integrate with my bank account for payment.

    I won’t add anything more to this topic, until there is something relevant published in the Apple PR site, or reputable media.
    Reply