* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Wednesday, June 4, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    California Mid-State Fair announces entertainment lineups for Frontier and Mission stages – KSBY News

    Exciting Entertainment Lineup Unveiled for California Mid-State Fair’s Frontier and Mission Stages!

    Spotify & OpenAI: Will Gen AI ‘Hollow Out’ Entertainment? – Technology Magazine

    Will Generative AI Transform the Future of Entertainment

    Author Richard Russo Will Speak At Sandwich Town Hall – CapeNews.net

    Join Us for an Inspiring Evening with Author Richard Russo at Sandwich Town Hall!

    Entertainment Partners Acquires CASHét, Digital Payments Vendor for Productions – Variety

    Entertainment Partners Acquires CASHét, Digital Payments Vendor for Productions – Variety

    Salem’s Harborwalk Garden Cultivates Community with Entertainment, Food, and Events – 105.7 WROR

    Discover the Vibrant Community Spirit at Salem’s Harborwalk Garden: A Hub for Entertainment, Food, and Fun!

    Entertainment-Focused Narrative and Culture Change Practice – New America

    Transforming Culture Through Engaging Entertainment Narratives

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    When fiction becomes fact: 3 pieces of modern technology inspired by Star Trek – Redshirts Always Die

    From Screen to Reality: 3 Modern Technologies Inspired by Star Trek

    The Isfahan Center for Nuclear Technology – UCF, ZPP, and IRR10 – Alma Research and Education Center

    Exploring the Isfahan Center for Nuclear Technology: Innovations and Insights from UCF, ZPP, and IRR10

    Inside the tedious effort to tally AI’s energy appetite – MIT Technology Review

    Inside the tedious effort to tally AI’s energy appetite – MIT Technology Review

    Finland Set to Lead EU Quantum Technology Defense Project – IoT World Today

    Finland Set to Lead EU Quantum Technology Defense Project – IoT World Today

    AI for lawyers: Win back your time using technology – nationaljurist.com

    Reclaim Your Time: How AI is Transforming the Legal Profession

    Prosecutors accuse men of exporting U.S. military technology to China – Milwaukee Journal Sentinel

    Men Charged with Illegally Exporting U.S. Military Technology to China

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    California Mid-State Fair announces entertainment lineups for Frontier and Mission stages – KSBY News

    Exciting Entertainment Lineup Unveiled for California Mid-State Fair’s Frontier and Mission Stages!

    Spotify & OpenAI: Will Gen AI ‘Hollow Out’ Entertainment? – Technology Magazine

    Will Generative AI Transform the Future of Entertainment

    Author Richard Russo Will Speak At Sandwich Town Hall – CapeNews.net

    Join Us for an Inspiring Evening with Author Richard Russo at Sandwich Town Hall!

    Entertainment Partners Acquires CASHét, Digital Payments Vendor for Productions – Variety

    Entertainment Partners Acquires CASHét, Digital Payments Vendor for Productions – Variety

    Salem’s Harborwalk Garden Cultivates Community with Entertainment, Food, and Events – 105.7 WROR

    Discover the Vibrant Community Spirit at Salem’s Harborwalk Garden: A Hub for Entertainment, Food, and Fun!

    Entertainment-Focused Narrative and Culture Change Practice – New America

    Transforming Culture Through Engaging Entertainment Narratives

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    When fiction becomes fact: 3 pieces of modern technology inspired by Star Trek – Redshirts Always Die

    From Screen to Reality: 3 Modern Technologies Inspired by Star Trek

    The Isfahan Center for Nuclear Technology – UCF, ZPP, and IRR10 – Alma Research and Education Center

    Exploring the Isfahan Center for Nuclear Technology: Innovations and Insights from UCF, ZPP, and IRR10

    Inside the tedious effort to tally AI’s energy appetite – MIT Technology Review

    Inside the tedious effort to tally AI’s energy appetite – MIT Technology Review

    Finland Set to Lead EU Quantum Technology Defense Project – IoT World Today

    Finland Set to Lead EU Quantum Technology Defense Project – IoT World Today

    AI for lawyers: Win back your time using technology – nationaljurist.com

    Reclaim Your Time: How AI is Transforming the Legal Profession

    Prosecutors accuse men of exporting U.S. military technology to China – Milwaukee Journal Sentinel

    Men Charged with Illegally Exporting U.S. Military Technology to China

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
Earth-News
No Result
View All Result
Home Technology

Apple and Goldman Sachs: A timeline of the messy partnership that might soon fall apart

July 2, 2023
in Technology
Apple and Goldman Sachs: A timeline of the messy partnership that might soon fall apart
Share on FacebookShare on Twitter

Apple Card 5% back

Given yesterday’s report that Goldman Sachs is looking to bail on its partnership with Apple, I thought it would be interesting to do a breakdown of the increasingly-messy relationship between the two companies. After forging their partnership in 2019, Apple appears to have thrived while Goldman Sachs has suffered.

The origins of Apple Card and Goldman Sachs

News of Apple’s partnership with Goldman Sachs first emerged in February 2019 from the Wall Street Journal. That’s the same news outlet that is now reporting on Goldman’s effort to back out of the deal and pass it off to American Express.

Apple announced Apple Card during its services-focused special event one month later at Steve Jobs Theater. The company also unveiled Apple TV+, Apple Arcade, Apple News+, and more during this event.

Apple Card launched to the general public in August 2019, allowing users to apply for the card and check their credit lines and approval status without a hard credit check.

A report a few months later revealed some early details on Goldman’s investment in Apple Card. By all indications, it was a successful launch, with Tim Cook touting during an October 2019 earnings call that it was the “most successful launch of a credit card in the United States ever.”

During that same earnings call, Tim Cook announced that Apple Card users would be able to finance iPhone purchases over 24 months with 0% interest. As the backing bank behind Apple Card, Goldman Sachs was on the hook for funding these loans. The new financing option launched to the public in December.

Allegations of Apple Card gender bias

In November 2019, however, there was a flareup of controversy surrounding Apple Card after allegations of gender bias emerged. Essentially, Apple Card users had noticed that gender discrimination was affecting the algorithms used to determine credit limits for Apple Card.

During this controversy, which led to multiple regulatory investigations, Apple stayed completely silent. Goldman Sachs issued multiple statements on the matter, explaining that the bank was “committed to ensuring our credit decision process is fair.”

The bank shouldered all of the burdens of the controversy, which isn’t surprising given that Goldman Sachs is the one who makes approval decisions for Apple Card. Still, I’m sure Goldman Sachs would have appreciated a little more public-facing support from Apple.

Apple Card financing and COVID-19

Moving ahead to 2020, Apple and Goldman Sachs expanded the 0% financing offer to the rest of Apple’s product lineup in June, including Mac, iPad, AirPods Pro, AirPods, Apple Pencil, and more.

Throughout 2020 amid the COVID-19 pandemic, Goldman Sachs allowed Apple Card users to defer their payments without interest. This was billed as the “Customer Assistance Program” and repeatedly extended through late 2020.

Other changes to Apple Card in 2020 included:

Apple launches web portal for Apple Card, pay your bill and view statements online

Apple launches new web-based application for aspiring Apple Card users

Your credit score now affected by Apple Card with all agencies

Apple Online Store adds new one-click payment option for Apple Card users

Apple Card Family

In 2021, Apple Card got a major boost with the launch of Apple Card Family. This addressed one of the long-time limitations of the platform and finally enabled users to share the same Apple Card with other family members via iCloud Family Sharing.

Also in 2021, Apple touted the ongoing success of Apple Card, citing a JD Power Study that found the card to rank “among the Midsize Credit Card segment and received a chart-topping score of 864.”

Other Apple Card and Goldman Sachs stories from 2021:

Apple extends deadline for Apple Card users to convert purchases into 0% monthly installments

Apple promoting its services with ‘exclusive offers’ for Apple Card users

Apple Card giving Daily Cash credits to iPhone 13 buyers affected by pre-order glitches

Goldman Sachs says Apple Card users can combine accounts even if there are active installment plans [U]

Some Apple Card Family users say they aren’t receiving Daily Cash rewards, more

Signs of struggle for Goldman Sachs emerge

Apple Card money lost one billion

While Apple Card continued to grow in popularity, with over 6 million estimated cardholders, some early signs of struggle began to emerge.

In May 2022, Scott Young, a Goldman Sachs executive credited for his work securing the Apple Card deal, left the bank. Young was Goldman’s head of partnerships in 2018, which is when Goldman and Apple reached an agreement to work together on Apple Card.

Next, Goldman Sachs announced that it was facing a probe from the Consumer Financial Protection Bureau over its consumer credit card business. The Apple Card’s “rapid growth” and Goldman’s struggle managing and scaling that growth were to blame for the investigation.

One of the primary focuses of that investigation was Goldman’s handling of Apple Card disputes. A dispute, or chargeback, is when a customer files a chargeback on a transaction, either because it was unauthorized or because the goods or services were not as the merchant described.

Goldman received “more disputes than it counted on” from Apple Card customers, and it struggled to manage that growth – especially given all of the regulatory requirements that surround credit card disputes. The problem was so bad that Apple and Goldman Sachs even gave customers a second chance at disputing transactions after complaints.

In October 2019, Despite the signs of struggle emerging, Goldman Sachs CEO David Solomon said that the company had reached a deal with Apple to extend the partnership through 2029.

Then, in January 2022, Goldman Sachs revealed that it had lost over $1 billion on its Apple Card partnership since 2020. While not a direct “loss” yet, regulations require Goldman to set aside a certain about to cover itself against potential nonpayments. The next month, Goldman claimed it was still “committed” to the partnership with Apple despite those losses. “It’s a very, very strong partnership where there’s a lot of opportunity,” Solomon said.

Solomon did acknowledge, however, that Goldman “probably took on more than we should have, too much, too quickly” in regards to its push into consumer banking.

In April, Goldman Sachs expanded its relationship with Apple with the launch of the Apple Card Savings Account. Goldman Sachs is also the issuer of the Mastercard payment credential used to complete Apple Pay Later purchases.

9to5Mac’s Take

That brings us to where we are today. The Wall Street Journal reports that Goldman Sachs wants to end its partnership with Apple and is “in talks with American Express to take over its Apple credit card and other ventures.” Apple is said to be aware of these negotiations and would need to sign off on a deal before anything could be finalized.

The bigger picture here is also important to keep in mind. Goldman Sachs had planned to use Apple Card to bolster its efforts to expand into consumer banking. The bank’s only other consumer credit card is a co-branded card with General Motors, which it is also looking to offload potentially to American Express. The bank was in negotiations to launch a co-branded credit card with T-Mobile but backed out of those talks.

Goldman has also scaled back Marcus, which which is its broader consumer banking business. This includes personal loan originations.

Ahead of the public Apple Card launch in 2019, Goldman’s head of consumer digital finance, Omer Ismail, said the company wasn’t worried about Apple Card’s profitability. “When I think about Marcus overall, the idea that doing right by the customer means being less profitable is just not an idea we subscribe to,” Ismail said. “If you do right by the customer, you’re going to ultimately win their loyalty.”

And finally, amid all of this, Apple is also ramping up its in-house personal finance efforts as part of its efforts to reduce reliance on third parties like Goldman Sachs. Internally, this is called “Project Breakout” and would bring things like lending, fraud analysis, and credit checks in-house.

I’ve gotten a lot of questions about what it might mean for customers if Apple Card is transferred to American Express. As it stands today, there are no details on that. Notably, this deal would also mean that Apple Card would no longer be a Mastercard.

The benefits that Apple gets for Apple Card is clear. It draws more users to the Wallet app. It encourages the use of Apple Pay. The financing provides an easy way for customers to buy Apple products they wouldn’t buy otherwise.

One thing to keep in mind is that most Apple Card users likely don’t even know Apple Card is backed by Goldman Sachs. Goldman Sachs exists in the backend, and everything else is managed directly through the Apple Wallet app. There’s a Goldman Sachs logo on the back of Apple Card, but Apple naturally doesn’t show this in any of its marketing materials.

I see two outcomes:

Apple works with Goldman Sachs and makes changes to Apple Card to make it a sustainable business for Goldman Sachs.

Apple lets Goldman Sachs out of the agreement (probably will make them pay a gazillion dollars in penalties/breakup fees). It then inks a new deal with someone like Amex and brands the change as “Apple Card 2” or similar.

So to recap: 

Goldman wants out of a deal that it’s losing big money on…

and where it gets little publicity or brand awareness…

and its partner is actively working behind the scenes to abandon it in favor of an in-house solution…

while it continues to fund the current version of the product at a loss and shoulder a lot of the negative PR burden…

I find this entire situation fascinating, and I have a bunch of questions to I’ll probably never learn the answers. Did Apple take Goldman for a ride? Take advantage of a bank without much experience in consumer banking?

FTC: We use income earning auto affiliate links. More.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : 9to5Mac – https://9to5mac.com/2023/07/01/apple-card-goldman-sachs-deal-ending-report/

Tags: AppleGoldmantechnology
Previous Post

‘High Desert’ cancelled at Apple TV+, but unlike other streamers Apple won’t pull shows off its platform

Next Post

Delhi govt collects ₹1,700 crore in excise duty, VAT in April-June quarter

Ecological crisis in Brazil’s Pantanal fuels human-jaguar conflict – Mongabay

Rising Tensions: How Brazil’s Pantanal Ecological Crisis is Igniting Human-Jaguar Conflicts

June 4, 2025
Why you’re catching the ‘ick’ so easily, according to science – Fast Company

Unpacking the ‘Ick’: The Science Behind Why We Fall Out of Attraction So Easily

June 4, 2025
Science Perspectives to Inform the ICJ Advisory Opinion on Climate Change – SDG Knowledge Hub

Science Perspectives to Inform the ICJ Advisory Opinion on Climate Change – SDG Knowledge Hub

June 4, 2025
My company transferred me from Chicago to London. Here’s how my lifestyle and the work culture compare. – Business Insider

My company transferred me from Chicago to London. Here’s how my lifestyle and the work culture compare. – Business Insider

June 4, 2025
Nvidia reclaims crown as world’s most valuable company as $1 trillion rally continues – Yahoo Finance

Nvidia reclaims crown as world’s most valuable company as $1 trillion rally continues – Yahoo Finance

June 4, 2025
Americans Are Worried About These 3 Aspects of the Economy — Should They Be? – MSN

Are Americans Right to Worry? Unpacking 3 Key Economic Concerns

June 4, 2025
California Mid-State Fair announces entertainment lineups for Frontier and Mission stages – KSBY News

Exciting Entertainment Lineup Unveiled for California Mid-State Fair’s Frontier and Mission Stages!

June 4, 2025
Altera Digital Health Collaborates With MCAG Amid $2.8B Blue Cross Blue Shield Provider Settlement – Business Wire

Altera Digital Health Teams Up with MCAG Following Major $2.8B Blue Cross Blue Shield Settlement

June 4, 2025
Appeals court upholds New York’s Reproductive Health Act – Spectrum News

Victory for Women’s Rights: Appeals Court Affirms New York’s Reproductive Health Act

June 4, 2025
When fiction becomes fact: 3 pieces of modern technology inspired by Star Trek – Redshirts Always Die

From Screen to Reality: 3 Modern Technologies Inspired by Star Trek

June 4, 2025

Categories

Archives

June 2025
MTWTFSS
 1
2345678
9101112131415
16171819202122
23242526272829
30 
« May    
Earth-News.info

The Earth News is an independent English-language daily published Website from all around the World News

Browse by Category

  • Business (20,132)
  • Ecology (666)
  • Economy (680)
  • Entertainment (21,586)
  • General (15,261)
  • Health (9,722)
  • Lifestyle (683)
  • News (22,149)
  • People (681)
  • Politics (689)
  • Science (15,900)
  • Sports (21,184)
  • Technology (15,666)
  • World (667)

Recent News

Ecological crisis in Brazil’s Pantanal fuels human-jaguar conflict – Mongabay

Rising Tensions: How Brazil’s Pantanal Ecological Crisis is Igniting Human-Jaguar Conflicts

June 4, 2025
Why you’re catching the ‘ick’ so easily, according to science – Fast Company

Unpacking the ‘Ick’: The Science Behind Why We Fall Out of Attraction So Easily

June 4, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

Go to mobile version