American Express may be the operating alternative that analysts have in mind for Apple Card, but the company's CEO doesn't seem all that excited about the prospect. Goldman Sachs' partnership with Apple on the Apple Card started off smoothly, but as 2023 rolled around, the relationship became increasingly hostile. After months of reports of discontent at Goldman Sachs, the two companies are expected to part ways in about a year.
Apple responded to the reports and said the two companies remain "focused on delivering incredible experiences for our customers to help them live healthier financial lives. The award-winning AppleCard is popular with consumers, and we will continue to innovate to provide consumers with the best tools and services."
However, a breakup seems inevitable. Moreover, analysts believe that Goldman Sachs may be replaced by American Express or Chase.
But when asked indirectly about the matter at the Goldman Sachs US Financial Services Conference, American Express CEO Steve Squery appeared to pour cold water on the idea.
"When we look at co-branded partnerships — and we have over 50 co-branded partnerships — you're really looking at partnerships where one plus one equals three," Squeri said, PaymentsDive reported Thursday.
Squeri went on to say that when American Express entered into a partnership with AppleCard, there had to be a "huge value proposition." According to reports, a major consideration for American Express is high-end customer positioning. Because this is the purpose of hoping for co-branding cooperation, and it is also the purpose of distribution. Will this add value to both brands? Have you created high-quality economic benefits? Therefore, we use this lens when evaluating partnerships. "
It's unclear whether American Express considers AppleCard holders to be "premium." A sticking point between Apple and Goldman has reportedly been Apple's demand for very broad acceptance, which is said to have resulted in huge losses for the lender.
"Sometimes partners want to reach everyone, and that's not our intention," Squery added.