Apple Pulls Plug On Goldman Credit-Card Partnership
Apple is pulling the plug on its credit-card partnership with Goldman Sachs (source paywalled; alternative source), the final nail in the coffin of the Wall Street bank's bid to expand into consumer lending. The tech giant recently sent a proposal to Goldman to exit from the contract in the next roughly 12 to 15 months, according to people briefed on the matter. The exit would cover their entire consumer partnership, including the credit card the companies launched in 2019 and the savings account rolled out this year. It couldn't be learned whether Apple has already lined up a new issuer for the card.
The move would mark a swift about-face for a program that just over a year ago was extended through 2029 and was intended to serve as a pillar of Goldman's main-street ambitions. The retreat began around the end of last year after Goldman lost billions of dollars trying to build out a full-service consumer operation. By early this year, Goldman had told Apple that it would be looking to offload the partnership. Typically the merchant -- in this case Apple -- plays a controlling role in such partnerships.