Ethan Riley
Apple Card is a credit card issued by Apple in partnership with Goldman Sachs Bank USA, also known as Marcus. The card is available only to qualifying applicants in the United States and can be applied for through the Wallet app on the iPhone. While Apple does not have a banking license, Goldman Sachs Bank is a traditional bank with a state charter and FDIC-insured status. The partnership between Apple and Goldman Sachs has been described as the future of banking, with Apple's brand strength and global reach of over two billion iPhones serving as a powerful distribution channel for Goldman's banking services.
| Characteristics | Values |
|---|---|
| Apple's partnership with Goldman Sachs | Apple Card |
| Goldman Sachs' role | Operates in the background, extends credit to consumers, handles account servicing |
| Apple's role | Designed the customer-facing interfaces used to manage Apple Card accounts on Apple devices |
| Apple's status | Does not have a banking license |
| Goldman Sachs' status | A bank with a state charter and FDIC-insured |
| Apple Card availability | Available to qualifying applicants in the United States |
| Apple Card features | No fees, transactions, payments, savings, and balance details all in one place |
| Apple Cash | A prepaid digital card held in the iPhone's digital wallet and issued by Green Dot Bank |
| Apple Card Monthly Installments plan | Allows cardholders to purchase Apple devices through a series of interest-free payments over a period of six months to two years |
| Physical cash deposits into Goldman Sachs | No information found, but sources suggest depositing cash into a local bank and then transferring to Apple Savings |
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What You'll Learn
Apple Card and Goldman Sachs
Apple Card is a credit card issued by Apple in partnership with Goldman Sachs Bank USA, also known as Marcus. The Apple Card lives on your iPhone, in the Wallet app, and can be used with Apple Pay. It is the first consumer credit card that Goldman Sachs has issued. Apple Card users can also access a high-yield savings account, provided by Goldman Sachs, where they can transfer money from Savings to Apple Cash or a linked external bank account.
Apple Card is subject to credit approval and is available only for qualifying applicants in the United States. The Apple Card does not have any fees, including annual, over-the-limit, foreign-transaction, or late fees.
In August 2019, Apple introduced the Apple Card in partnership with Goldman Sachs, marking a significant expansion into consumer lending for both companies. The partnership allowed Apple to encourage more spending on its devices and in its stores and app store. Goldman Sachs, which has limited experience in the consumer credit card market, was able to establish itself in the market through the Apple Card partnership.
In 2023, the Consumer Financial Protection Bureau (CFPB) took action against Apple and Goldman Sachs for customer service breakdowns and misrepresentations impacting hundreds of thousands of Apple Card users. The CFPB found that Apple and Goldman Sachs illegally sidestepped their legal obligations for Apple Card borrowers. The CFPB ordered Goldman Sachs to pay at least $19.8 million in redress and a $45 million civil money penalty, and Apple to pay a $25 million civil money penalty.
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Apple's financial services
Apple has become a significant player in the financial technology sector, reshaping the industry with its seamless integration of payment systems, credit solutions, and savings accounts. Apple Financial Services offers financing and refresh options to businesses, schools, and universities, helping them plan for the long term while also supporting short-term changes.
Apple's success in financial services is attributed to its embedded finance strategy, which involves incorporating financial services into everyday tech devices, making finance more accessible and enhancing customer engagement. This strategy has solidified user loyalty and further entrenched consumers within Apple's ecosystem.
Apple Card, for example, lives on your iPhone in the Wallet app, allowing for quick application and immediate use with Apple Pay. The Apple Card is issued by Goldman Sachs Bank USA, marking the first consumer credit card they have issued. Apple Card owners can access savings accounts provided by Goldman Sachs and transfer money between their Apple Cash, savings, and external bank accounts.
Apple's partnership with Goldman Sachs combines the tech giant's consumer-centric technology with the expertise of traditional banks, allowing Apple to offer competitive financial products without becoming a bank itself. This collaboration has been pivotal in Apple's financial offerings and its ability to reshape consumer financial interactions.
Apple's foray into financial services has set new industry standards and serves as a wake-up call for traditional financial institutions to accelerate their digital transformation. The convergence of tech and finance is revolutionizing how financial services are delivered and experienced, with Apple at the forefront of this transformation.
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Goldman Sachs' consumer finance
Goldman Sachs is a leading global investment banking, securities, and asset and wealth management firm that provides a wide range of financial services. In 2015, Goldman Sachs made the decision to enter the consumer finance sector. In April 2016, Goldman Sachs Bank USA acquired GE Capital Bank's US online deposit platform, enabling the firm to provide an online bank for retail customers. Later that year, the firm launched the Marcus platform, offering no-fee unsecured personal loans.
Marcus by Goldman Sachs combines the firm's financial expertise with technology to address consumer pain points regarding finance. The platform is named after the firm's founder and is based on extensive research and direct feedback from consumers regarding their frustrations with consumer finance. By the end of 2017, Marcus' online lending platform had originated $2 billion in loans, and the firm integrated GS Bank USA's online deposit platform under the Marcus brand.
In 2018, Goldman Sachs expanded its consumer footprint internationally by launching a Marcus online savings platform in the United Kingdom. In August 2019, Goldman Sachs collaborated with Apple to launch the Apple Card, the first consumer credit card issued by the firm in its 150-year history. The Apple Card is a product of the Marcus team's ambition to build a "large, differentiated, highly profitable digital consumer platform."
Apple Card owners and co-owners can open a savings account provided by Goldman Sachs Bank USA, Salt Lake City Branch. The savings account allows individuals to transfer money from savings to Apple Cash or a linked external bank account. It is important to note that neither Apple Inc. nor Apple Payments Services LLC, a subsidiary of Apple Inc., is a bank. Goldman Sachs provides banking services for Apple Card and savings accounts.
Overall, Goldman Sachs' entry into the consumer finance sector through the Marcus platform and subsequent collaboration with Apple for the Apple Card demonstrates its focus on developing an enduring consumer franchise and helping consumers take control of their financial lives.
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Apple's partnership with Goldman Sachs
Apple and Goldman Sachs' partnership involves the Apple Card, a credit card issued by Goldman Sachs Bank USA, which Apple users can access through the Wallet app on their iPhone or iPad. The Apple Card is the first consumer credit card that Goldman Sachs has issued, marking a significant expansion into consumer lending for both companies. The Apple Card allows users to make payments, access savings accounts, and view transaction history, balance details, and available savings all in one place.
The Apple Card was introduced in August 2019 and is subject to credit approval, with only qualifying applicants in the United States being eligible for the card. Goldman Sachs handles the extension of credit to consumers and account servicing, while Apple designed the customer-facing interfaces used to manage Apple Card accounts on Apple devices. The Apple Card does not charge any fees, including annual, over-the-limit, foreign transaction, or late fees.
In addition to the Apple Card, Apple also offers a high-yield savings account powered by Goldman Sachs. This savings account allows users to accumulate daily cash rewards from spending on their Apple Card, which are automatically deposited into their savings. Users can also add funds to their savings from linked bank accounts.
The partnership between Apple and Goldman Sachs has faced some challenges, including customer service breakdowns and misrepresentations that impacted Apple Card users. In one instance, Apple and Goldman Sachs were ordered to pay over $89 million in penalties for failing to properly handle cardholder disputes and misleading cardholders about a payment plan for iPhones and other Apple products. Despite this, the partnership between the two companies continues to evolve, with Apple integrating financial products into its ecosystem and Goldman Sachs gaining a foothold in the consumer credit card market.
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Goldman Sachs' physical branches
Goldman Sachs is an American multinational investment bank and financial services company. It was founded in 1869 and is headquartered in Lower Manhattan, New York City. The company operates through various subsidiaries, including Goldman Sachs Bank USA, which provides Apple Card and savings accounts.
Goldman Sachs has regional headquarters and offices in many international financial centres, including Amsterdam, Copenhagen, Dubai, Geneva, Paris, Stockholm, Warsaw, and Zurich. In the United States, the bank has a presence in several states, such as California, Florida, Illinois, New Jersey, New York, and Texas.
While Goldman Sachs has physical branches and offices in multiple locations, it is important to note that their services are primarily focused on investment banking, securities underwriting, asset management, and other financial products. The physical branches cater to these specific services rather than traditional banking transactions.
Apple Card, a collaboration between Apple and Goldman Sachs, is a digital credit card integrated into Apple's iPhone and iPad devices. It does not require physical deposits, and transactions are conducted digitally through the Wallet app. Therefore, while Goldman Sachs has physical branches, they are not directly involved in handling Apple Card-related transactions or deposits.
Goldman Sachs Bank USA, the issuer of the Apple Card, is a direct bank. It operates through digital channels and does not have a network of physical branches for customers to visit. The collaboration between Apple and Goldman Sachs combines Apple's technology and brand with Goldman Sachs' financial expertise and infrastructure.
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Frequently asked questions
No, Apple does not have a banking license and Goldman Sachs operates in the background of Apple's financial products. Apple's physical stores sell devices, not banking services.
The Apple Card is a credit card issued by Goldman Sachs Bank USA, which lives on your iPhone in the Wallet app.
Apple and Goldman Sachs partnered in 2019 to create the Apple Card. Goldman Sachs extends credit to consumers and handles account servicing, while Apple designed the customer-facing interfaces used to manage Apple Card accounts on Apple devices.
No, you cannot make physical cash deposits into Goldman Sachs. However, you can deposit physical cash into your local bank and then transfer the money to your Apple Card.
