Goldman Sachs is reportedly contemplating an exit from its partnership with Apple, as reported by the Wall Street Journal on Friday. The two companies had previously collaborated to introduce a virtual credit card in 2019.
As part of its potential withdrawal, Goldman Sachs is said to be engaging in discussions with American Express to transfer its Apple credit card and other joint ventures with the technology giant. The move aims to ensure a seamless transition and continuity of services for Apple customers.
In March, Apple introduced its “buy now, pay later” service in the United States through the Mastercard Installments program, with Goldman Sachs serving as the issuer of the Mastercard payment credential.
The Apple credit card, known for its sleek titanium design without a visible number, currently provides customers with a 3% daily cashback offer for spending or saving, as stated on Apple’s website. It also allows interest-free monthly instalment options for the purchase of Apple devices.
As the discussions between Goldman Sachs and American Express progress, further details regarding the potential transition and any implications for Apple customers will likely emerge in the near future.
Apple and Goldman Sachs recently introduced a high-yield savings account after a long-awaited release. However, Apple has been taking steps to reduce its reliance on partners for its financial services.
According to reports from the Wall Street Journal, Goldman Sachs has been in discussions regarding the potential transfer of its card partnership with General Motors Co. to American Express or another issuer. However, it should be noted that a deal with American Express is not currently imminent or guaranteed.
Following this news, American Express shares experienced a 1.1% increase in after-hours trading, while the shares of Goldman Sachs and Apple remained relatively stable.
Additionally, it is worth mentioning that Goldman Sachs Group Inc. has lost its position as the world’s top mergers and acquisitions (M&A) adviser for the first time in five years. Goldman Sachs now holds the second spot, with its involvement in transactions totalling $237 billion, which translates to an 18.8% market share. The last time Goldman Sachs ranked second in a half-year period was during the first half of 2018.
Also read: Apple’s Market Value Ends Beyond $3 trillion for the First Time
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