Goldman Sachs Strikes Credit Card Deal With T-Mobile After Apple and GM

Three years after expanding into credit cards, Goldman Sachs Group Inc. has quietly signed up a third partner, T-Mobile US Inc.

The agreement to collaborate, under discussion since at least last year, was reached in recent months, according to people familiar with the matter, asking not to be identified discussing private talks. So far, neither company has discussed the project publicly, and spokespeople for T-Mobile and Goldman declined to comment.

The accord was struck just as pressure began mounting on the Wall Street giant to stem the cost of a yearslong effort to build a consumer business, dubbed Marcus, that has yet to become profitable. Goldman’s management has been wrestling with how to choke off losses in its consumer business and follow through with aspirations for expansion.

After card deals with Apple Inc. and General Motors Co., Goldman will have to navigate new types of risks signing up T-Mobile customers. The carrier offers a wide variety of phones and plans, designed to provide service to people with low incomes or spotty credit histories. But the company has been investing in its network, and that is helping attract more prime customers than ever before, T-Mobile Chief Executive Officer Mike Sievert has said.

Signage for a T-Mobile store in San Francisco, California, U.S., on Monday Jan. 31, 2022. T-Mobile US Inc. is scheduled to release earnings figures on Feb. 2.