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Apple (NASDAQ:AAPL) is tapping out on its consumer-finance partnership with Goldman Sachs (NYSE:GS), The Wall Street Journal reported, likely putting an end to the investment bank’s consumer-lending ambitions.
Apple has proposed exiting its credit-card and savings-account contract with Goldman around the next 12-15 months, according to the report, which cited people briefed on the matter.
The two companies had launched their credit card for U.S. consumers in summer 2019. And the deal seemed to gain momentum with an extension last year to 2029 that included a move into savings accounts.
But Goldman Sachs ran into heavy losses in setting up its consumer operation, and in an atypical move for a non-merchant card partner told Apple early this year that it would be looking to exit.
Goldman this month also told employees that it would be looking to end its other credit-card partnership, with General Motors, according to the report. The bank has talked with American Express (NYSE:AXP) about the prospect of taking over Apple’s card program, though it’s not yet clear who a new issuer might be.