Goldman Sachs: Goldman Sachs looks to part ways with Apple, American Express could fill in – Times of India
Goldman Sachs is considering ending its partnership with Apple, severing a four-year-old relationship that helped the iPhone maker foray into the finance segment.
Apple partnered with Goldman Sachs to offer financial services to its users, starting with the Apple Card credit card, introduced four years ago in 2019. Then, the two collaborated to expand the services to Apple Pay Later and the Apple Savings account.
David Solomon, CEO of Goldman Sachs, has faced criticism for his attempts to diversify the company’s traditional activities toward consumer lending. However, these efforts have not been successful, with some initiatives being abandoned.
Despite plans to extend the partnership with Apple until 2029, there are indications that these plans may change.
According to The Washington Journal, the bank is discussing with American Express Co. the possibility of acquiring the Apple credit card and other services that the two companies provide jointly. The discussion has been going on for months, and Apple is aware of these talks, reports the Journal.
Goldman Sachs said in January that it had experienced a loss of approximately $3 billion in its consumer banking operations over three years. CEO David Solomon mentioned that the bank was contemplating “strategic alternatives,” but had previously expressed dedication to its partnership with Apple.
For the transfer to complete, the iPhone maker must agree, so it is not sure if the deal with American Express would go through. The deal is not “imminent or assured,” as per the sources.
While the two companies have been working together closely, Apple is reportedly working on reducing reliance on third-party partners for its financial services, laying the groundwork to shift operations in-house.
Apple’s new financial division is responsible for managing the lending aspect of its buy now, pay later service. However, the iPhone maker still has Goldman Sachs and MasterCard as issuing bank and payments network provider.
Apple partnered with Goldman Sachs to offer financial services to its users, starting with the Apple Card credit card, introduced four years ago in 2019. Then, the two collaborated to expand the services to Apple Pay Later and the Apple Savings account.
David Solomon, CEO of Goldman Sachs, has faced criticism for his attempts to diversify the company’s traditional activities toward consumer lending. However, these efforts have not been successful, with some initiatives being abandoned.
Despite plans to extend the partnership with Apple until 2029, there are indications that these plans may change.
According to The Washington Journal, the bank is discussing with American Express Co. the possibility of acquiring the Apple credit card and other services that the two companies provide jointly. The discussion has been going on for months, and Apple is aware of these talks, reports the Journal.
Goldman Sachs said in January that it had experienced a loss of approximately $3 billion in its consumer banking operations over three years. CEO David Solomon mentioned that the bank was contemplating “strategic alternatives,” but had previously expressed dedication to its partnership with Apple.
For the transfer to complete, the iPhone maker must agree, so it is not sure if the deal with American Express would go through. The deal is not “imminent or assured,” as per the sources.
While the two companies have been working together closely, Apple is reportedly working on reducing reliance on third-party partners for its financial services, laying the groundwork to shift operations in-house.
Apple’s new financial division is responsible for managing the lending aspect of its buy now, pay later service. However, the iPhone maker still has Goldman Sachs and MasterCard as issuing bank and payments network provider.
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