Goldman eyes exit from Apple Card partnership, report says. Here's what that means for the financial services giant.

Financial services giant Goldman Sachs Group, Inc. GS is reportedly seeking to sever ties with Apple, Inc. AAPL.

What happened: Goldman is in talks to offload Apple Credit Card and other joint ventures with the tech giant to American Express Company AXP, the Wall Street reported Newspaper, citing people familiar with the matter. .

The rumor comes as a surprise as Goldman partnered with Apple for a high-yield savings account for Apple Card users earlier this year. The two companies are also collaborating on Apple's Pay Later in the US, which allows users to split purchases into four installments over six weeks with no interest or fees.

The publication also noted that Goldman is in talks about transferring its card partnership with General Motors Corp. GM to Amex or another issuer.

See also: Everything you need to know about Apple stocks

Why it matters: If Goldman decides to exit Apple, it would mark the end of its consumer lending operation, the Wall Street Journal reported. The bank has reportedly stopped making personal loans and is in the process of finding a buyer for home improvement lender GreenSky, which was bought in 2022.

Severing ties with Apple would pour cold water on Goldman's quest to become a full-service bank.

Goldman's first contact with mainstream companies was through the Marcus High Yield Savings Account which it began offering in 2016. The partnership with Apple was forged three years later.

The transaction rumor is not acquired, because Apple could have to accept the transfer of the activity of Apple cards to Amex. The report also indicates that the transfer will likely take time.

Goldman ended Friday's session down 0.17% at $322.54, according to data from Benzinga Pro.

Read next: Apple Card, next stop: India! iPhone-Maker discusses plans with RBI and HDFC Bank

Photo: Shutterstock

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.