The department at Goldman Sachs responsible for business with Apple’s credit card, Apple Card, has experienced another significant loss. Platform Solutions, which allows other companies to offer financial services through Goldman Sachs’ platform, reported a loss of $872 million before taxes and $667 million net in the second quarter. CEO David Solomon admitted that the department did not perform well. This is not the first loss for the “Platform Solutions” department, as it had already lost at least $1 billion since 2020. There were reports that Goldman Sachs wanted to remove the Apple Card, but contract limitations prevent this. Rumors suggest that American Express may be a potential new partner. The “Platform Solutions” area includes the Apple Card, various credit cards from General Motors, and other banking transactions with end customers. It is also likely that Goldman Sachs will have to write off its investment in fintech credit company GreenSky. Despite these challenges, Apple is reportedly not concerned as the risk of loss remains with the bank according to their contracts. The Apple Card is popular due to its customer-friendly features, but customer service from Goldman Sachs has been problematic. Moreover, Goldman Sachs’ scaling back of international investment plans has impacted the availability of the Apple Card in other regions.
