Yet another report has revealed that Apple is planning to sever ties with its Apple Card provider Goldman Sachs, and it seems the company may already have a replacement lined up.
The news
Bloomberg is the second outlet to report that Apple and Goldman Sachs are set to part ways. According to Mark Gurman, Apple “recently sent a term sheet to the financial giant that would be a first step toward severing the contract, according to a person familiar with the matter.” It’s said the process “could still take multiple years”, but that Apple “remains committed to its Apple Card credit card and savings account and doesn’t plan to discontinue the products — whether or not Goldman is involved.”
Why it matters to you
The Apple Card is a popular, if not mainstream financial offering from the company that offers users some nifty rewards including cashback on certain purchases, notably at the Apple store. While the Apple Card is an Apple product, it’s provided and issued by GS, and a change in the backer could see terms such as interest rates or reward offerings change. However, it could also mean that Apple Card can be made available in more countries, whereas it’s currently exclusive to US shores.
The context
This is the second report in as many days stating Apple and Goldman might part ways when it comes to Apple Card. The Wall Street Journal recently reported that Apple was planning to cancel its credit card partnership with the company, ending it within the next 18 months.
Previously, it had been reported that Goldman Sachs has been trying to jettison its consumer-facing products including American Express as the company faces declining profits and a share price down nearly 12% in the last year.
A brighter future?
As Gurman notes, Apple is not planning to discontinue Apple Card or its high-yield Savings account. This means Apple needs a new partner for both, and it might have already found one. According to 9to5Mac, Apple hosted a job listing in August that “seeks a software engineer to work with Apple Processing LLC, an Apple subsidiary focused on payment solutions”. The position, which was removed in August, “explicitly mentions that the engineer will be working with Pismo,” a Brazilian fintech outfit that specializes in issuing cards and was recently acquired by Visa. Pismo’s website hails its “next-gen banking and cards technology” built on a “truly cloud-native API platform” with support for Visa and Mastercard, digital wallets, lending, and more. The company boasts $208B in transactions every year and 33M accounts created yearly.
Light at the end of the tunnel - iMore’s take
It sounds like Apple’s troubled partnership with Goldman Sachs is, for all intents and purposes, over. But the prospect of a new partner in Pismo, or anyone else, likely ensures that the impact on Apple Card customers will be absolutely minimal. Apple will certainly want to ensure some continuity with its Apple Card and Savings offerings, and changes that might impact borrowing or interest rates could see customers walk away from the service.
With Apple now drawing more than a fifth of its revenue from its services division (Apple Music, iCloud, and beyond) in 2023, growing its financial offerings will be a key part of sustaining that momentum. The biggest question for Apple Card and its Savings account remains the prospect of a more global release. Apple Card has been a US-only product since its inception, and we’re all clamoring for it to make the leap across the pond, and elsewhere. Perhaps Apple’s new partner is the kickstart Apple Card needs to foster its release in other territories.
