The investment and securities trading company Goldman Sachs is about to try to get rid of the Apple Card. The bank is now in talks with American Express (Amex) to announce its Apple credit card and other projects with the iPhone maker, according to the Wall Street Journal (WSJ). The Apple Card business has so far been a loss-making business for the bank.
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Agreement with Amex is not imminent
Goldman Sachs announced last year that it would scale back its consumer business. However, the company recently extended its partnership with Apple through the end of the decade, declaring its support of Apple’s “buy now, pay later” proposition. According to people familiar with the talks, the bank is in talks to divest Apple’s credit card business to Amex. However, an agreement with Amex is neither imminent nor certain reports the WSJ further.
As a result, Goldman Sachs CEO David Solomon had to put up with a lot of internal criticism for leading the costly push into retail banking. In January, Goldman announced that the company has lost about $3 billion on its consumer credit business since 2020, including with the Apple Card. Apple introduced its credit card in the United States in August 2016. Whether Apple’s credit card will ever be introduced in Europe and with which bank cooperation remains uncertain.
Both negotiations and a possible handover from Goldman Sachs to the financial service provider, which essentially issues credit cards in addition to insurance and banking transactions, will therefore still need plenty of time. Withdrawal from Apple’s credit card business means the end of Goldman Sachs’ consumer lending business – the bank also plans to sell its card partnership with General Motors and the sale of the fintech company GreenSky, which it acquired last year. Goldman Sachs has already stopped talks with T-Mobile about introducing a credit card and granting personal loans, according to the WSJ.
(bme)
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