2023-11-29 02:41:47
As rumors indicated would happen, the partnership between Apple and the Goldman Sachs (responsible for Apple Card and businesses like Apple Saving) is expected to come to an end in the coming months. According to the The Wall Street JournalMaçã sent the bank a proposal to terminate the contract, which should be completed in around 12-15 months.
The news regarding the end of the partnership, which will cover all business between the two companies, corroborates recent reports from the company itself WSJ which indicated a deterioration in the relationship — especially on the part of Goldman Sachs. The bank would have lost a lot of money with the partnership and would be trying to restrict its field of activity in the financial sector — an intention that would exclude Maçã from its plans.
But other factors may have influenced the bank’s dissatisfaction with Apple, which pressured the financial institution to provide credit to practically all applicants and to send the accounts of all card holders at the beginning of the month. Some Goldman Sachs executives also hold Maçã responsible for decisions made by regulatory bodies once morest the bank.
As in this type of partnership Apple plays a controlling role over the contract, it can be imagined that Goldman Sachs expressed to the company its desire to end the deal. Apple, in turn, would have sent the termination proposal at the bank’s request.
The big issue is whether Apple already knows who will be the new financier of its lucrative financial business. Goldman Sachs attempted to negotiate a transfer of the partnership to American Expressbut the financial company reportedly expressed concerns regarding several aspects — including loss rates.
It is unclear whether these discussions have continued, but it is likely that another institution will enter the picture. This is the Synchrony Financialwhich is the largest issuer of credit cards for stores in the United States and even competed with Goldman Sachs for the partnership with Apple in the past — and ended up losing.
Although we still don’t know if (and/or how) this change might affect current Apple Card users, it might be that behind the scenes there will be a more sudden change in terms of the level of control that Apple has over the business in a likely future. partnership with another institution.
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