Apple (AAPL) is considering replacing Goldman Sachs (GS) with JPMorgan Chase (JPM) as its credit card partner. The private discussion took place earlier this year, although any prospects for a solid deal are yet to be seen, said an anonymous source.
Last year, Goldman Sachs and Apple revoked their partnership viewed by numerous lenders as risky and perilously futile, which involved the facilitation of credit cards and savings accounts. In this regard, Goldman Sachs has declined to provide any comment.
Launched in 2019, Apple and Goldman Sachs’ cards were the pinnacle of their retail strategy – by approving low-credit customers in the hope of increased revenue, while such cards tendered “no fees” perk and cashback. However, Goldman Sachs must have a considerably larger reserve for non-performing assets in pursuit of the mentioned cards, resulting in even higher paper losses.
In addition, Goldman Sachs is also undergoing an exit from a credit-card partnership with General Motors (GM) and has recently centered on its forte – investment banking and trading, following the failed venture into consumer banking that cost the bank billions of dollars.
Nevertheless, investors seemed to support Goldman Sachs’ decision to refocus on Wall Street – made apparent by a 27% nudge in GS stock.
