American Express CEO Hints at No Apple Card Deal Amid Goldman Sachs Losses

The Apple Card and Goldman Sachs partnership is likely to end, with the bank reportedly wasting millions of dollars to attract new consumers. To recall, American Express and JP Morgan Chase were mentioned as potential candidates, but the CEO's responses indicate that he has little to no intention of making a deal.

American Express Exec Not Interested In Materializing A Deal

A rocky business relationship with Goldman Sachs implied that the Apple Card would need to find a new partner soon, WCCFTECH reported. Payments Dive says that in a recent interview with American Express CEO Steve Squeri, the executive makes no mention of the Apple Card but does mention that the financial services company has over "50 co-brand relationships."

"When we look at co-brand partnerships – and we have over 50 co-brand partnerships – you're really looking for one plus one equals three. Because that's what you want a co-brand partnership for, is the distribution, as well. And does it add value to both brands? And do you create premium economics? So, as we evaluate partnerships, that's the lens that we use," Squeri stated.

Squeri would have certainly examined the Apple Card and Goldman Sachs business relationship in great depth, with his attention primarily focused on how the bank lost $1.2 billion last year as a result of that collaboration. On average, Goldman Sachs paid $350 to acquire an Apple Card customer, with the bank handling most of the operations rather than Apple.

American Express Prioritizes Premium Customer Targeting

Squeri remarked that when there is a relationship, such as with Apple Card, there must be "great value propositions" for American Express. Premium customer targeting is said to be a significant priority for Amex.

"Because that's what you want a co-brand partnership for, is the distribution, as well. And does it add value to both brands? And do you create premium economics? So, as we evaluate partnerships, that's the lens that we use," the American Express exec said.

It's unclear whether American Express considers Apple Card members to be "premium." According to reports, one of the sticking issues between Apple and Goldman Sachs was that Apple needed broad acceptance, resulting in significant losses for the lender.

Meanwhile, according to AppleInsider, Squeri notes that sometimes the partner wishes to reach everyone. While this is conceivable, it results in unfathomable losses, likely what happened with the Goldman Sachs and Apple Card agreement. However, we have yet to cross American Express off the list entirely, so let us see if Tim Cook and Steve Squeri can pick up where Goldman Sachs left off.

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