The Apple Card days may be coming to an end, as Goldman Sachs isn’t happy with its consumer division. Over the past few months, we have heard several reports of scrapped features and the investment bank losing money mostly because of Apple Card.
Now, in a report by The Wall Street Journal, the publication says the relationship between Apple and Goldman Sachs has really deteriorated, as one executive has reportedly said that “we should never have done this f* thing.”
According to WSJ, Goldman Sachs is negotiating to sell off all of its consumer products, as reports suggest the bank spends $350 for every new Apple Card user, in addition to having lost $1.2 billion in 2022, mostly due to Apple Card.
While the bank has talked with American Express, the firm said it was concerned about issues like Apple Card loss rates. Interestingly, this could help explain why this partnership never expanded beyond the US – as the bank understands that expanding this business would only bring more loss.
That said, over the past year, Apple and Goldman Sachs released Apple Pay Later, which was designed with users’ financial health in mind. The service allows users to split purchases into four payments spread over six weeks with no interest or fees. Users can easily track, manage, and repay their loans in one convenient location in Apple Wallet. Users can apply for service loans of $50 to $1,000, which can be used for online and in-app purchases made on iPhones and iPads with merchants that accept Apple Pay.
In addition, the two companies also launched the Apple Card Savings accounts. With that, users can grow their Daily Cash rewards with a Savings account from Goldman Sachs, which offers an APY of 4.15 percent. It comes with no fees, minimum deposits, or minimum balance requirements. Users can easily set up and manage their Savings account directly from Apple Card in Wallet.
Although the companies discarded unveiling a stock-trading feature for the iPhone, it seems we won’t see many new financial features between GS and Apple, as the investment bank wants to retreat from these deals.