Four years after partnering with Apple on the launch of the Apple Card, Goldman Sachs may be looking for a way out. The Wall Street Journal reports that Goldman is "looking for a way out" of its high-profile deal with Apple, which recently expanded to include savings accounts for Apple Card holders.
Goldman’s Potential Exit from the Partnership
The investment banking firm is apparently in talks to offload the partnership to American Express, according to the WSJ report. However, it’s not clear if Apple would support the handoff. The potential exit comes as no surprise, given Goldman CEO David Solomon’s comments earlier this year on considering strategic alternatives for the firm’s consumer arm.
Background on Goldman Sachs and Apple Card
In 2019, Goldman Sachs partnered with Apple to launch the Apple Card, a credit card designed specifically for Apple users. The partnership marked a significant move by Goldman into the consumer financial services market. Since its launch, the Apple Card has gained popularity among consumers, offering rewards, low-interest rates, and easy payment tracking.
Other Consumer-Facing Businesses of Goldman Sachs
Beyond its deal with Apple, Goldman’s consumer-facing business includes a credit card partnership with General Motors as well as GreenSky, the lending company Goldman bought for $2.2 billion in 2021. The expansion into consumer finance has been a key area of focus for Goldman under Solomon’s leadership.
Uncertainty Surrounding the Partnership
It’s unclear what exactly led to the potential exit from the partnership or whether Apple would be willing to continue without Goldman. For now, both parties have not commented on the WSJ report. However, with American Express reportedly in talks to take over the partnership, it’s possible that a change may be on the horizon.
Impact of Potential Exit on Consumers
If Goldman does exit its partnership with Apple, it could potentially impact consumers who use the Apple Card and rely on its services for their financial needs. It’s uncertain what would happen to the savings accounts feature recently added to the Apple Card or whether American Express would continue to offer similar services.
Industry Implications of Potential Exit
A change in the partnership between Goldman and Apple could have broader implications for the fintech industry. The success of consumer-facing partnerships like the Apple Card has raised expectations for future collaborations between financial institutions and tech giants.
Timeline of Goldman Sachs’ Consumer-Facing Business Expansion
- 2019: Goldman Sachs partners with Apple to launch the Apple Card
- 2021: Goldman buys GreenSky, a lending company, for $2.2 billion
- Present day: Potential exit from Apple Card partnership and talks with American Express
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This story has been updated to include more information on Goldman’s consumer-facing business and its potential exit from the Apple Card partnership.