Apple plans to end a credit card partnership with Goldman Sachs that it once touted as a blockbuster new business
Goldman Sachs Group, which has been trying to jettison its struggling credit card business, now has a potential way out of its partnership with Apple.
The iPhone maker, which offers a credit card and savings account with Goldman, recently sent a term sheet to the financial giant that would be a first step toward severing the contract, according to a person familiar with the matter. The process could still take multiple years, said the person, who asked not to be identified because the discussions are private. The partnership had been slated to last at least another five years.
Goldman Sachs has been pulling back from a foray into consumer lending after it proved costlier than expected. The New York-based company has said it pushed too quickly into the effort, contributing to missteps. Goldman also is expected to scrap a credit card partnership with General Motors Co.
For Apple, the partnership was part of a broader push into financial offerings. The company is looking to generate more revenue from services as sales of its hardware products slow. Apple got 22% of its sales from that category last year, up from less than 10% a decade ago.
