Apple To End Credit Card Partnership Deal with Goldman Sachs

Apple has proposed ending its credit card partnership with Goldman Sachs within the next 12-15 months, according to sources familiar with the matter who told this to The Wall Street Journal. The tech giant's move signals the breakdown of what was intended to be a key partnership for both companies.

Apple and Goldman launched their co-branded credit card in 2019 as part of a long-term agreement slated to run through 2029. However, Apple recently sent Goldman a proposal to exit the entire consumer credit partnership, including the original credit card and a savings account rolled out last year.

The retreat comes amid Goldman's struggles to build a successful consumer lending business beyond its traditional Wall Street clientele. The bank had aimed to leverage partnerships like the Apple Card to expand its leading street presence but reportedly lost billions in the process. Goldman has since backed away from other consumer initiatives and is now refocusing on its core businesses.

Sources say Apple has yet to line up a new credit card issuer, though Goldman had discussed transferring the program to American Express. Amex raised concerns about loss rates, and it's unclear if talks are ongoing.

The end of the lucrative partnership is a setback for Apple's growing services segment. However, credit cards likely represent a small portion of those revenues. For Goldman, it marks the effective end of its failed push into broader consumer lending following the winding down of other programs.

Privately, some Goldman executives have blamed Apple's demands for increased regulatory scrutiny, while the bank faces challenges in retaining affected employees as it loses the business. The termination of the high-profile partnership, which saw early hiccups, finalizes the end of Goldman's consumer lending ambitions.