Apple Calls Off Credit Card Tie-Up With Goldman Sachs, Sets 12-15 Month Timeline For Split: WSJ
Portfolio Pulse from Ananya Gairola
Apple Inc. (AAPL) plans to end its credit card partnership with Goldman Sachs Group (GS) within 12 to 15 months, as reported by the Wall Street Journal. The decision follows nearly four years of collaboration since 2019. Apple has recently launched a high-yield savings account and a 'buy now, pay later' service, while Goldman Sachs has been reevaluating its consumer lending strategy, including a potential sale of its General Motors credit card program.

November 29, 2023 | 2:48 am
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Goldman Sachs' reassessment of its consumer lending strategy, including the potential sale of its General Motors credit card program, may be affected by the termination of its partnership with Apple.
The end of the partnership with Apple could be seen as a loss for Goldman Sachs, as it may reduce the bank's exposure to the consumer credit market. This, combined with the internal challenges and strategic shifts, could negatively impact investor sentiment in the short term.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Apple's decision to end its credit card partnership with Goldman Sachs may reflect a strategic move to focus on its own financial services, such as the newly launched high-yield savings account and BNPL service.
While the termination of the partnership with Goldman Sachs is significant, Apple's introduction of its own financial services could mitigate any negative impact. The company's strong brand and customer base may allow it to successfully transition to its own offerings.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 80