Why Apple is ending its credit card deal with Goldman Sachs

TheStreet’s J.D. Durkin brings the latest business headlines from the floor of the New York Stock Exchange as markets close for trading Wednesday, November 29th. 

Full Video Transcript Below:

J.D. DURKIN: I’m J.D. Durkin – reporting from the New York Stock Exchange.

Stocks were mixed to close out today’s session. The Dow closed up 16 points, the Nasdaq closed down fractionally, and the S&P also closed fractionally lower. This comes after third-quarter GDP showed a remarkably strong economy even as inflation continues to come down. Markets are on pace to close out the month in the green as traders look ahead to the final trading day of November.

Investors are looking ahead to a key inflation report Thursday, which is heavily watched by the Federal Reserve.

In other news – Apple has informed Goldman Sachs that it plans to end its credit card program. The iPhone maker said it will wind down the program in 12 to 15 months, despite Goldman saying just a year ago that the deal would continue until at least 2029. The end of the partnership also includes closing the savings account program, which rolled out earlier in 2023.

Apple launched the Goldman-backed credit card in 2019 promising credit to almost any Apple user. But Goldman Sachs has lost $3 billion in its consumer banking division since 2020, and the company will refocus efforts to its usual large corporation and wealthy clients. Goldman already ended a previous credit card partnership with General Motors earlier this month.

For Apple, it’s a small blow to its services business, which it relied on to offset slowing iPhone sales. However, Apple sales are down less than one percent annually, while its services revenue is up about 16 percent. Apple said it plans to look for a new banking partner to continue the credit card deal.

That’ll do it for your daily briefing. From the New York Stock Exchange, I’m J.D. Durkin with TheStreet.

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