Goldman Sachs and Apple's partnership brought forth one of the biggest fintech developments offered in the industry, but it was revealed earlier this year that it was not all butterflies and rainbows for the bank. As per the bank, this specific venture with Apple ate as much as $1 billion in their funds, with this partnership doing so since 2020.
Now, there are reports that Goldman Sachs is looking for a next partner for Apple, eyeing American Express to fulfill the financial aspect of the service for the Cupertino company.
Goldman Sachs Lost $1B in Apple Card, Wants to Pass it to Amex
(Photo : Michael Short/Getty Images)
The Wall Street Journal reported that Goldman Sachs is allegedly looking to pass off its partnership to Apple, now eyeing American Express to bring its financial services for the company's fintech venture. This was because of its January 2023 revelation that it lost as much as $1 billion with the Apple Card venture alone.
As per Goldman Sachs' regulatory filing earlier this year, the company's "Platform Solutions" already lost a total of $4 billion on its operations, with its partnership with Cupertino making up $1 billion of it.
With as much as 25 percent accounted to Apple, Goldman Sachs is ready to drop the ball and let another financial institution take charge of the famed Apple Card ventures and its entirety, says WSJ.
It is yet unknown if this transfer would push through, especially as all parties would have to agree on the changes.
Read Also: Apple Card Savings is Now Available: How to Start Earning Interest for Your Money
Apple Card and American Express to Work on Apple Card?
According to 9to5Mac, Goldman Sachs is still discussing this with American Express and is not yet a guaranteed transfer of service of one of the biggest partnerships in fintech.
Goldman Sachs also revealed last year that it extended its partnership with Apple on the payment solution to last until 2029. However, now there are claims regarding the company leaving the rest to Amex, months after its extension with Apple.
Apple Card and What it Offers
The Apple Card remains a US-exclusive in what the Cupertino giant offers, centering on a credit card solution that allows Apple device users to own both a titanium card and set up an account straight via Wallet. Its service expanded more towards the following years to the entirety of the United States, and would soon branch out to other countries once it properly arranges it.
Apple first introduced the Apple Card back in 2019 with Goldman Sachs already in the picture to bring the fintech aspect of what the service brings. Later in the year, the service was made available to all parts of the US as long as they own an iPhone.
Goldman Sachs and Apple extended the partnership back in 2022 to last until 2029, and amidst last year, they also introduced the high-yield savings account known as Apple Card Savings. Despite all these, Goldman Sachs is reportedly looking to abandon ship and pass it off to another bank, to help fulfill the financial aspects of the Apple Card.
Related Article: Apple Card Savings Sees Withdraw Delays, Customers Complaining-What is Happening?
