Apple has reportedly decided to scrap its credit card partnership with Goldman Sachs Group in the next 12 to 15 months.

According to a Wall Street Journal report from Tuesday, the iPhone maker had recently sent a proposal to Goldman to exit its partnership which has seen the companies collaborate on a virtual credit card first launched in 2019.

The entire consumer partnership would be scrapped under this proposal, including the savings account introduced earlier this year.

The move represents a dramatic switch for Apple, after it extended the partnership last year through to 2029. Goldman had previously said that it viewed the partnership with Apple as part of its long-term strategy to grow its consumer business.

The report however notes that Apple began its retreat around the end of 2022 after Goldman lost billions on developing its full-service consumer operation, and that Goldman had told Apple in early 2023 that it would be looking to offload the partnership after its failed experiment.

The WSJ report says it is currently unclear whether Apple has lined up a new issuer for its card programme, noting that Goldman had discussed the possibility of handing over its role to American Express. Amex however is said to have raised concerns over issues such as loss rates and it is unclear whether those discussions were entirely shelved.

Synchrony Financial, which initially bid against Goldman for the Apple partnership, could take over the programme, the report adds.

In comments to Reuters following the report’s publication, a spokesperson for Apple said: "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."

Goldman has not provided comment on the story.

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