When one of your executives says “we should have never done this f—ing thing”, you know something is wrong with your product. That’s exactly what one of Goldman Sachs's partners told colleagues at the bank about Apple Card a short time after the company hyped the partnership up to employees in April 2023.
Now, Goldman Sachs is reportedly looking to dissolve its partnership with the Cupertino-based firm, as well as cease its other consumer lending initiatives, according to a new report from the Wall Street Journal.
What’s happening to Apple Card
It’s not just Apple Card that looks like it’s going to have to come up with a new partner — the future of the GM credit card is not looking good, either. In fact, the partner in charge of the two public-facing lending schemes is currently leaving the position she’s held for a considerable amount of time, “according to people familiar with the matter”.
Some in Goldman Sachs are saying that there’s the potential for the partnership to remain, albeit with Apple footing more of the bill with a greater chunk of the initiative. “For example, one idea proposed that Apple could become the lender for new credit-card spending and issuance, with Goldman continuing to manage the existing loans.”
The Wall Street Journal says that this is unlikely to happen however, as “those discussions haven’t reached high levels at either company,” and those within Goldman say that they aren’t considering it at the moment.
The Apple Card has proved to be a useful way for Apple customers to buy a new iPhone 15, a new MacBook Pro, or even a pair of AirPods Max. It integrates with Apple Pay, making tracking spending easy, and it offers cashback at certain retailers. While there is some conjecture that the card might be passed over to Amex, at the moment the future remains unclear for the Apple card — although Goldman Sachs has hired credit-card master Bill Johnson to figure out, by the end of the year, how to make the partnership profitable.
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