The tech giant and the Wall Street titan went from “the most successful credit card launch ever” to Goldman trying to exit the partnership. From a report: Apple and Goldman Sachs were in test runs before embarking publicly on one of the biggest-name partnerships ever between tech and finance. Engineers from the Silicon Valley giant and the Wall Street titan were pulling an all-nighter a few months before launch, scrambling to find a solution to a problem that had cropped up: Tim Cook couldn’t get approved for an Apple Card.
Apple and Goldman had struck the powerful alliance as they set out to build a revolutionary digital-first credit card with designs on expanding into other consumer finance products. For Goldman, it was a key opportunity to grow the consumer business it had jumped into as it sought to diversify away from the old-school Wall Street revenue model of trading and advising on deals. For Apple, it was a way to bolster its services business, broaden its finance offerings — which began with Apple Pay — and, maybe most importantly, prompt people to buy more iPhones.
In October 2019, a couple of months after customers began signing up, Goldman CEO David Solomon described it as “the most successful credit card launch ever.” Less than four years later — and only a handful of months after the two companies extended their contract through the end of the decade — the Apple-Goldman deal is teetering. Some of the partnership’s shortcomings have blemished both companies’ world-class reputations, and a falling-out could threaten future collaboration between Wall Street and tech at large. Goldman has been trying to get out of the pact because it won’t be profitable enough for the bank in the near term, according to people familiar with the matter, and it has shopped the relationship to credit card issuer American Express.
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