Apple Card future up in the air

Will my card be a paperweight now?

MajorLinux - Editor-in-chief

As an Apple Card holder, one of the coolest thing about it was that I could manage so much of that card from a very responsive app. When I spent money, it was instantly gone. I didn’t have to wait for several days to get updated. The coolest thing about it, though, was the minimalist “card” made out of titanium. Dropping it commanded attention, literally.

However, it seems that the future of the card may be up in the air.

Apple and Goldman Sachs, the bank behind the Apple Card, are calling it quits. The Wall Street Journal reports that Apple has “sent a proposal to Goldman to exit from the contract in the next roughly 12-to-15 months.”

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’s statement to CNBC

This story has been brewing for a while as Goldman Sachs has been looking for a way out of this partnership. Apparently, it wasn’t making Goldman as much money as they thought it would. It looks as though they lost money during the whole ordeal.

It is unknown what the future has in store for the Apple Card, but there is likely still some interest. Synchrony was in the running to handle the card until Goldman outbid them. Would they still be interested after this news. Goldman has floated the idea of moving the program to American Express.

Goldman has discussed with American Express the possibility of handing over the program to the card giant. Amex expressed concern about several aspects of the program, including its loss rates, and it’s not clear if those discussions have continued. 

Synchrony Financial has also been looking into the possibility of taking over the credit-card program, some of the people said. Synchrony, the largest issuer of store credit cards in the U.S., lends to a wide spectrum of consumers, including those with lower credit scores. Synchrony, which originally bid against Goldman for the Apple credit-card program, for years has been trying to position itself as an issuer with close ties to tech companies and counts Amazon and PayPal among its largest card partners.

There has also been reporting on Apple creating their own payment processing technology. Called “Project Breakout“, this would see Apple become even less reliant on outside sources.

It almost seems like Apple could be a better “everything” company than Musky Musk wants Twitter to be.

Source: 9to5Mac

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By MajorLinux Editor-in-chief
Marcus Summers is a Linux system administrator by trade. He has been working with Linux for nearly 15 years and has become a fan of open source ideals. He self identifies as a socialist and believes that the world's information should be free for all.
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