Apple is planning to launch the Apple Card, its own credit card in India. In the US, it is provided to customers in partnership with MasterCard and Goldman Sachs. Goldman Sachs meanwhile is trying to bail out
Goldman Sachs, four years after collaborating with Apple on the introduction of the Apple Card, may be contemplating an exit strategy. According to The Wall Street Journal, Goldman Sachs is actively seeking a way to disengage from its prominent deal with Apple, which recently expanded to include savings accounts for Apple Card holders.
The investment banking firm is currently engaged in discussions to transfer the partnership to American Express, as mentioned in the WSJ report. However, no concrete agreements have been reached yet, and it remains uncertain whether Apple would support such a handover.
Apple Card in India
Apple meanwhile, is trying to expand its presence in the Indian market and is planning to launch the Apple Card, a premium credit card, in India. The company has been engaging in discussions with banks and regulatory authorities in the country for this purpose. During CEO Tim Cook’s visit to India in April, he held a meeting with Sashidhar Jagdishan, the CEO and Managing Director of HDFC Bank.
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Furthermore, Apple has been in talks with the Reserve Bank of India (RBI) to discuss the specific operational details of the card. Moneycontrol reports that the RBI has requested Apple to follow the standard procedures applicable to co-branded credit cards, and has not granted any special concessions to the company.
Goldman Sachs backing out of Apple Card
While the outcome of Goldman Sachs and American Express’ discussions still remains uncertain, it wouldn’t be surprising if this arrangement ultimately materializes.
Earlier this year, Goldman CEO David Solomon expressed his contemplation of strategic alternatives for the investment firm’s consumer division. In addition to its association with Apple, Goldman’s consumer-oriented business encompasses a credit card partnership with General Motors and the acquisition of GreenSky, a lending company purchased for $2.2 billion in 2021.
Apple Card in the US vs Apple Card in India
Notably, the Apple Card does not impose any annual fees. In the United States, Apple Card users have the option to purchase Apple products in interest-free instalments. Additionally, customers can earn cashback of approximately 3-5 per cent when purchasing Apple products and services. Apple may also establish partnerships with other premium brands, offering 2-3 per cent cashback or reward points for purchases made with these partners.
In the US, Apple Card holders benefit from a daily 2 per cent cashback when using their card via Apple Watch or iPhone. Furthermore, the card provides 3 per cent cashback at major merchants.
In India, Apple may face limitations in launching the Apple Card and carrying out certain activities associated with it. Due to heavy regulations surrounding credit cards in the country, Apple may not have the authority to issue the card itself. Additionally, the physical titanium card, as introduced in the United States, may not be feasible for launch in India.
The Reserve Bank of India (RBI) has implemented regulations concerning the offerings and charges that banks can provide to credit card customers. Furthermore, last year, the RBI issued a directive stating that banks and their partners are prohibited from storing customer data or transaction data. This directive will also be applicable to the Apple Card, meaning that Apple cannot store card details on its platforms within India.
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