Apple and Goldman Sachs are potentially ending their partnership four years after joining forces on an Apple credit card, The Wall Street Journal reports. The companies recently extended their agreement until 2029, but Apple proposes ending the contract in the next 12 to 15 months.
Although the pair launched a high-yield savings account in April of this year, it's likely that Goldman won't be too upset by a possible breakup. Last month, reports suggested the bank was aiming to get out of the consumer lending business. It had gone as far as to tell Apple earlier this year that it would like to get out of the agreement and approached American Express to take over its side of operations.
Goldman also recently made arrangements to sell home improvement loan company Green Sky and plans to end its other credit card partnership with General Motors. Basically, Goldman tried to diversify outside of corporate and very wealthy clients, potentially writing off billions of dollars before returning to basics. The bank told employees that any layoffs would include one year's salary.
In a statement to CNBC, an Apple representative said: "Apple and Goldman Sachs are focused on providing an incredible experience for our customers to help them lead healthier financial lives. The award-winning Apple Card has seen a great reception from consumers, and we will continue to innovate and deliver the best tools and services for them."
Apple and Goldman's partnership was never a match made in heaven for the companies or consumers. Goldman employees were frustrated with aspects such as the payment schedule and a push for mass application approval. Customers, on the other hand, reported that the bank's customer service was a nightmare, including delayed transfers and lectures from representatives, according to The Information.
The future of Apple's credit card and high-yield savings account is uncertain. The pair are part of Apple's services sector, which is seeing growing revenue compared to reductions in its general sales. Synchrony Financial, which works with Amazon and PayPal, has been exploring the possibility of taking over Goldman's role. The company originally bid against Goldman for the program.