The drama in the will they/won’t they saga of Apple Card and Marcus by Goldman Sachs is heating up again. A new report in the Wall Street Journal states that Apple plans to change issuers in the next two years, with Synchrony rumored to be a possible destination. Here’s what you need to know about the latest in the Apple-Marcus relationship:
Report: More Upheaval with the Apple Card to Come
The potential breakup of the Apple Card/Goldman Sachs partnership appears to be edging closer. Previous reports hinted that Marcus, the digital banking imprint of Goldman Sachs, sought to terminate the partnership, citing spiraling losses since the Apple Card’s launch in late 2019.
According to Marcus sources, the bank has lost more than $1 billion since the launch – although Apple has declared the card a runaway success. Nearly seven million Apple Card accounts are currently open, according to the company. Still, the staggering upkeep – and hoarding of all the credit for the card’s development – have soured Goldman Sachs on its credit card portfolio.
Apple Planning to Shift Banks?
Now, a new report by the Wall Street Journal (WSJ) indicates Apple is looking to end the partnership. The WSJ report states that Apple is looking to cut ties with Marcus not only on its Apple Card credit card but also on Apple’s new high-yield savings account. While no exit date or agreements have been reached, Apple hopes to finalize the transition in the next 12-15 months.
Interestingly, American Express, originally cited as a potential Apple Card destination, is likely out of the running – at least for the foreseeable future. That is because the card’s original agreements stipulate it must remain on the Mastercard payment network for at least the next few years. Synchrony is another potential landing spot for Apple, as the bank is a major issuer of co-branded retail and store credit cards.
Apple was non-committal on the news when reached for a comment by CNBC:
“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.”
About Marcus Credit Cards
Apple is just one of Goldman Sach’s credit card partnerships. The bank also issues the popular GM Rewards auto credit cards, having acquired the General Motors (GM) portfolio from Capital One in a deal worth $2.5 billion. The GM portfolio includes two consumer-branded credit cards from GM, the My GM Rewards Card™ and GM Extended Family Card, plus a business rewards card, the GM Business Card™.
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