New Delhi:- Apple has had a close relationship with Goldman Sachs through the Apple Card, but it appears to be an unhappy marriage. Goldman Sachs is in talks with American Express to transfer its partnership with Apple, according to The Wall Street Journal. This comes after Goldman said in January that it had lost more than $1 billion in Apple Card transactions so far.

According to reports, Goldman is "in negotiations to move these businesses and credit card partnerships to Amex." Goldman has already significantly scaled back its involvement in the consumer finance industry.

The news may not come as much of a surprise to long-time followers, but it clearly doesn't line up with Goldman Sachs' recent comments. Last October, Goldman Sachs CEO David Solomon said the company had reached an agreement with Apple to extend its partnership through 2029.

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Goldman Sachs said in January that it had lost more than $1 billion since 2020 on its partnership with Apple Card. But the bank said in February it was maintaining its partnership with Apple despite those losses. "This is a very strong partnership and one that offers many opportunities," Solomon said. 

Goldman Sachs, in an unhappy relationship, recently expanded its relationship with Apple by launching the Apple Card Savings Account. Goldman Sachs is also the issuer of Mastercard payment details used to process Apple Pay Later purchases.

First, the Apple Card does not charge users any non-interest fees. Other card companies charge late fees, international transaction fees, and other fees, but Apple Card does not. Second, Goldman was also very generous in his Apple Card endorsement. As a result, the bank was able to withdraw at much higher interest rates than banks such as Chase and Bank of America. 

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Goldman's net charge-off rate is 2.93%, twice that of Chase and Bank of America a "claim" usually arises when a customer fails to pay for his 6 months. Interest is one of the most lucrative ways of making money for credit card companies, but banks can't collect that interest (at least not immediately) if customers just stop paying their bills.

More than a quarter of Goldman's card loans go to people with FICO scores below 660. Chase says users with scores below 660 will be given 12% of the credit. Bank of America says 3.7% of its loans are tied to FICO scores below 620.

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Goldman staff say the firm is less aggressive (and less successful) in collecting written-off debt than other banks. 

Goldman Sachs is facing a huge loss due to the tech giant Apple when they shifted to the Apple card and invested in it but now Goldman Sachs is trying to get into a partnership with American Express (AMEX) after facing this huge loss since 2020.