Apple is reportedly closing its credit-card partnership with Goldman Sachs, according to the Wall Street Journal.
According to reports, Apple has "sent a proposal to Goldman to exit from the contract in the next roughly 12-to-15 months," ending one of the biggest partnerships between a bank and a tech firm.
The news came after Goldman wanted to bail out of the deal and pass it off to American Express.
Apple partnered with the investment company for its Apple Card and Apple Card Savings Account in 2019.
Whether Apple will secure a partnership after ending its deal with Goldman remains unclear. Both Apple and Goldman declined to comment on the reports.
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Issues in the Goldman Sachs Partnership
While Apple's credit-card partnership with Goldman has been wildly successful, the investment bank could not handle all the consequences of the success.
In November 2019, just after the Apple Card was launched, users accused the card of gender biases affecting credit card limits.
Goldman issued multiple statements regarding the matter, promising to be "committed to ensuring our credit decision process is fair." Apple did not.
The credit card's high rise also prompted a probe from the Consumer Financial Protection Bureau over Goldman's struggle to scale back operations from the Apple Card's "rapid growth."
Goldman is reportedly struggling to handle "more disputes than it counted on" from Apple Card customers.
The bank later declared in 2022 that it incurred a $1 billion loss from the Apple Card venture since 2020. Goldman has to use a substantial amount of money against potential nonpayment.
Goldman Sachs CEO David Solomon said that the bank "probably took on more than we should have, too much, too quickly" with the Apple deal.
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Apple Card Future
While it remains uncertain how Apple will handle the exit from the Goldman partnership, it is unlikely that Apple Card users will immediately feel it.
Synchrony Financial, one of the biggest credit card suppliers, has been reported to be interested in taking over the deal.
