Goldman Sachs may exit Apple Card partnership, offload to AE
"A retreat from the Apple credit card would effectively end Goldman Sachs's consumer-lending business," the report noted.
Representative Image (Photo: IANS)
SAN FRANCISCO: Goldman Sachs, which partnered Apple on the launch of Apple Card four years ago, may be eyeing an exit and is reportedly planning to offload its partnership to American Express.
The Wall Street Journal reported that the investment banking firm is "looking for a way out" of its high-profile deal with Apple.
"A retreat from the Apple credit card would effectively end Goldman Sachs's consumer-lending business," the report noted.
Apple and Goldman did not immediately comment on the report. The shift to American Express could affect where Apple cardholders can use their card. Apple Cards are currently issued by Mastercard, which is accepted at a majority of retailers across the US, while American Express has a bit less reach.
Apple launched its credit card in partnership with Goldman Sachs in 2019. Earlier this year, Goldman CEO David Solomon said he was "considering strategic alternatives" for the investment firm's consumer arm. There are reports that Apple Card may soon enter the Indian market, although the company has not said anything about the plan.
In April, Apple launched a new high-yield savings account for Apple Card users that comes with a 4.15 annual percentage yield (APY). Users can also withdraw funds at any time through the Savings dashboard by transferring them to a linked bank account or to their Apple Cash card, with no fees.