Apple ends credit card partnership with Goldman Sachs
In a surprising turn of events, Apple has announced that it will be ending its credit card program with Goldman Sachs within the next 12–15 months. The partnership, which was launched in 2019 with much fanfare, will come to an end after a series of setbacks for both companies.
The Goldman-backed card was initially met with excitement from consumers, with a flashy ad campaign promising a credit card not from a traditional bank. However, it seems that the partnership did not live up to expectations, as reports indicate that Goldman was overwhelmed by the size of the consumer credit program.
The news comes as a major setback for Goldman, which has been heavily investing in its consumer credit efforts in recent years. The company has faced challenges in scaling the required customer service and back-end resources for the Apple partnership, leading to discussions of handing off the program to other potential suitors.
This marks a stark turnaround from just a few months ago, when Goldman had announced that its Apple partnership would last until at least 2029. The company has also faced financial losses in its consumer banking division, with a reported $3 billion lost since 2020.
For Apple, the end of the partnership could present obstacles to increasing service revenue, which has become a key sector for the company as product sales have declined. While it is expected that Apple will pursue a credit deal with a new banking partner, the details of any potential agreements are currently unclear.
Overall, the end of the Apple-Goldman partnership represents a significant development in the consumer credit industry, with potential implications for both companies’ future strategies. It remains to be seen how the companies will navigate this change and what the future holds for their respective consumer credit offerings.