Apple has repeatedly trumpeted the success of its financial services, a product lineup that now encompasses the Apple Card credit card, high-interest savings accounts, and a buy-now-pay-later service called Apple Pay Later.
But even if those products have proven reasonably popular with consumers, they haven’t been working out for the bank that Apple has partnered with to supply those services. Goldman Sachs’ consumer services have been losing the company billions of dollars, according to reporting from Bloomberg, CNBC, and The New York Times, among others. These losses have been driven in part by a much higher-than-usual loss rate on its credit card loans—meaning that people with Goldman-backed credit cards like the Apple Card are actually making their payments less often than people with credit cards from other banks.
Today, The Wall Street Journal reports that Apple has sent Goldman Sachs a proposal that will end their partnership within the next 12 to 15 months, leaving Apple to find a new backer for its financial products.
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