Apple Ends Partnership With Goldman Sachs as Tech Giant Expands into Lending

cryptonews.com:

Apple has decided to terminate its credit-card partnership with Goldman Sachs as the tech giant pushes deeper into consumer lending.

Apple recently submitted a proposal to Goldman Sachs, outlining its intention to exit the contract within the next 12 to 15 months, according to a  report from The Wall Street Journal . 

The termination encompasses the entire consumer partnership, including the credit card launched in 2019 and the savings account introduced this year.

The decision marks a rapid reversal for a program that, just over a year ago, was extended until 2029 and was expected to be a cornerstone of Goldman Sachs’ foray into the mainstream consumer market. 

However, things took a turn for the worse for Goldman Sachs towards the end of last year when it incurred significant losses in its attempts to establish a comprehensive consumer operation. 

By early this year, Goldman Sachs had informed Apple of its intention to offload the partnership. 

Typically, the merchant, in this case, Apple, holds a controlling role in such collaborations.

Goldman Sachs has engaged in discussions with American Express regarding the possibility of transferring the program to the renowned card giant. 

However, American Express has raised concerns about certain aspects of the program, including its loss rates, and it remains uncertain whether these discussions have progressed further. 

Synchrony Financial, the largest issuer of store credit cards in the U.S., has also shown interest in assuming control of the credit-card program. 

Synchrony has long sought to position itself as an issuer with close ties to tech companies, boasting partnerships with industry giants such as Amazon and PayPal. 

Interestingly, Synchrony originally