The Apple Card and Goldman Sachs alliance is likely ending, with the bank reportedly on the losing end of the deal as it was bleeding millions of dollars in an attempt to reel in new customers. In an earlier report, it was stated that American Express was a potential candidate, along with JP Morgan Chase, but the Chief Executive’s replies suggest that he has little to no intentions of materializing a deal.
American Express CEO says the bank has over ‘50 co-brand partnerships’ but does not explicitly mention the Apple Card or its customers
A tumultuous business relationship with Goldman Sachs always meant that the Apple Card would have to search for a new partner soon. According to a recent interview with American Express CEO Steve Squeri, Payments Dive reports that the executive does not make any mention of the Apple Card but does point out that the financial services institution has over ‘50 co-brand partnerships.’
“When we look at co-brand partnerships – and we have over 50 co-brand partnerships – you’re really looking for one plus one equals three. Because that’s what you want a co-brand partnership for, is the distribution, as well. And does it add value to both brands? And do you create premium economics? So, as we evaluate partnerships, that’s the lens that we use.”
Squeri would likely have studied the Apple Card and Goldman Sachs business relationship in copious detail, and his attention would mainly be focused on how the bank lost $1.2 billion last year due to that partnership. On average, Goldman Sachs spent $350 acquiring an Apple Card customer, with the majority of operations being carried out by the bank instead of Apple.
As noted by AppleInsider, Squeri states that sometimes, the partner wishes to reach everyone, and while that is possible, it causes unbearable losses, which is probably what transpired with the Goldman Sachs and Apple Card deal. Then again, we have yet to check off American Express from the list completely, so let us see if Tim Cook and Steve Squeri can continue where Goldman Sachs left off.
News Source: Payments Dive
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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