Is the Future of the Apple Card in Question?

Do you have the Apple Card in your wallet?

You may see some significant changes to your rewards credit card in the months ahead.

A new report from the Wall Street Journal indicates that Apple has decided to end its relationship with Goldman Sachs, which is the issuer of the Apple Card and the popular Apple savings accounts that promise more than 4% interest.

In this article, we’ll sort through what the Wall Street Journal is reporting and try to forecast what that could mean for Apple Card members in the coming months.

---

Wall Street Journal Reports Apple Is Ditching Goldman Sachs

According to the Wall Street Journal, Apple has informed Goldman Sachs that it will be ending the business relationship that has produced these popular credit cards and savings accounts within the next 12-15 months:

“The tech giant recently sent a proposal to Goldman to exit from the contract in the next roughly 12 to 15 months, according to people briefed on the matter. The exit would cover their entire consumer partnership, including the credit card the companies launched in 2019 and the savings account rolled out this year.”

This news may come as a surprise to some as Apple and Goldman Sachs had previously announced an extension of this partnership that was expected to run through 2029.

---

Why Is This Happening?

The Wall Street Journal report cites a few issues that have led to Apple’s desire to exit its contract with Goldman Sachs.

Those include:

• Trouble with the Consumer Financial Protection Bureau. WSJ reports: “Goldman disclosed last year that the Consumer Financial Protection Bureau is investigating its “credit card account management practices,” including how the bank resolves billing errors and refunds cardholders.”
• Trouble with the Federal Reserve. The WSJ report also says that Goldman is under scrutiny for its broader consumer-lending business practices.
• Goldman Sachs is losing major money. The relationship appeared to be strained in both directions, as Goldman Sachs reportedly “lost billions of dollars trying to build out a full-service consumer operation.” As a result, the bank informed Apple that it would be looking to potentially offload the project to another card issuer.

---

What Does This Mean for Existing Cardholders Right Now?

This news does not have an immediate impact on the usage of these products for existing customers. It appears to be “business as usual” for the time being.

Existing customers have not received any communication about potential changes to their accounts.

And, as of November 29, 2023, Apple was still accepting new applications for the Apple Card.

Team Clark has a couple of staff members who have active Apple Card users in their households, so we will continue to monitor this situation. I will provide updates from any communication they receive about the future of their accounts.

---

What Does This Mean for the Future of the Apple Card?

It is not yet known if there is a new partner lined up to work with Apple, but the Wall Street Journal mentions American Express and Synchrony Financial as established credit card issuers that have either had discussions about working with Apple in the past or could be considered as future partners.

Either could be a fit both for credit cards and the savings accounts.

As it stands now, both of these banks offer high-yield savings accounts that offer higher APR returns than the 4.15% APR that Apple and Goldman Sachs began marketing earlier this year. So, it is conceivable that either would be comfortable offering a similar product to Apple users.

And when it comes to rewards credit cards, both American Express and Synchrony have some popular offerings that display the capability of supporting an Apple product in that space as well.

We often suggest the Blue Cash Preferred® Card from American Express for its rewards potential, and The Platinum Card® from American Express has long been a favorite for high-volume travelers.

Synchrony is the bank behind the popular PayPal Cashback Mastercard® that offers 3% back with PayPal and 2% back on all other purchases. It also backs the Sam’s Club® Mastercard® that offers 5% back on gas purchases.

---

More About the Apple Card

Learn More → Annual Fee: $0.00 Rewards Program Details: 3% cash back rewards can be earned on Apple Pay purchases made directly through these brands on their websites/apps or at their stores: Apple Store or Apple.com (This includes the App Store and Apple services.) Panera Bread Uber Eats T-Mobile Exxon or Mobil Nike Walgreens 2% cash back rewards can be earned on any purchase made with Apple Pay. 1% cash back rewards can be earned on non-Apple Pay purchases everywhere else. Bonus Offer: None Intro APR Period on New Purchases: None Foreign Transaction Fee: None Apple Card Review

The Apple Card is not on our list for best rewards credit cards, but that doesn’t mean that it isn’t the right choice for some consumers.

When reviewing this credit card, I found that these were some of the reasons it might be worth considering:

Apple Card Is Worth It to You If:

• You make a significant amount of Apple product purchases. Having this card could really pay off if you’re buying iPhones, iPads and Mac products with regularity. The card offers 3% cash back on products you buy directly through Apple. It also offers interest-free financing options for select Apple products.
• You use Apple Pay to make most of your purchases. If the Apple Pay function is your go-to choice at the register, you can get 2% back on every purchase you make with the card. Certain retailers also offer bonus cash back for using the Apple Card via Apple Pay. You’ll also get instant notifications for your transactions and cash back earnings via your Apple Wallet app.
• You like titanium credit cards. Though you’ll likely only get 1% back on purchases made with the physical Apple Card, you will do it in style. And with extra security. The physical Apple Card is titanium (not plastic) and does not have credit card numbers printed on it.

---

Do you have an Apple Card? Do you like it? Are you excited about potential changes to the program? We’d love to hear your thoughts in the Clark.com community.