Apple and Goldman Sachs are parting ways on the Apple Card and the tech giant will be in the market for a new issuer — and whether that’s a traditional financial institution or card-issuing fintech is the question now.  

The companies have been in cahoots on the Apple Card since 2019, but losses in Goldman’s consumer business in the past year have Apple heading toward the exit, The Wall Street Journal first reported on Nov. 28.

With its departure from Goldman, Apple now has an opportunity to run a card program itself, Matthew Goldman, founder of Pasadena Calif.-based consulting firm Totavi, told Bank Automation News. If Apple wants to go to a banking service provider — or acquire one — it has the capital to do so. Apple has a market capitalization of $2.95 trillion. 

One avenue would be to select a new traditional bank partner to provide a co-branded card. Apple could consider Chase, Citibank or even Synchrony for a stronger, consumer-focused banking partner, Matthew Goldman said.  

Or the tech giant could look to a fintech option, like Marqueta or Tally.  

It’s not clear which path Apple will take, or what regulators would think of it, but there is a model that would give Apple the option to go the fintech route — and the ability to “own the experience,” he said.  

If Apple does take the fintech route it would be “a surprise, but could also give Apple the flexibility, control and experience they ultimately want and may never be able to get from a traditional FI,” Matthew Goldman said. 

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