Apple Credit Card: Goldman Sachs wants to get rid of the contract as soon as possible

Goldman Sachs (GS) bank is still trying to get out as soon as possible from the contract with Apple, which obliges the institution to issue Apple Card credit cards. CEO David Solomon said during a call with analysts this week that the bank has a deal with Apple that officially runs through 2030. “But there is a possibility that it will not continue for that long.” The financial institution is running at high losses with its entire credit card department, as the Apple Card is comparatively customer-friendly.

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Return on equity reduced due to Apple Card

The so-called Platform Solutions unit, which issues the Apple Card, reported a loss of $859 million last year. Without the Apple Card, you would have gotten about 75 to 100 basis points of return on equity, Solomon says, which you also As a hobbyist DJ Knows. But he believes “things will improve in 2025 and 2026.”

GS has been looking for a bank or credit card issuer to take over the Apple contract for years. It was clearly designed in a very stable manner; Unilateral termination by the Bank is considered impossible. Recently it was said that major US bank JP Morgan and its subsidiary Chase could take advantage. However, negotiations with American Express (Amex) do not appear to be fruitful. However, the last information about a potential Chase deal was months ago, so negotiations could again fail. GS did not comment on this.

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Credit card only in the United States, trouble for Apple due to customer service

Apple Card has been on the market for five years and celebrated its birthday last summer. Not much has really happened since then. A possible internationalization has still not been realized, which has much to do with Goldman Sachs’ reluctance (and the bank’s lack of infrastructure). Accordingly, only people with US residence can primarily purchase digital credit cards. It is free and, like in the United States and elsewhere, has nothing to do with it, except for a higher interest rate in “spinning” operations.

However, there are still problems with the service. GS and Apple were jointly fined nearly $90 million to the US financial regulator CFPB due to multiple complaints about the handling of billing and disputes. Apple itself emphasized that these were “years ago”. Customer support for Apple Card is managed by the Platform Solutions unit of Goldman Sachs.

(B.Sc.)