By Nupur Anand
NEW YORK – Apple is currently in negotiations with Barclays to take over as the credit card partner for the tech giant, replacing Goldman Sachs, according to sources familiar with the matter. The move comes as Goldman Sachs steps back from its consumer finance initiatives.
Synchrony Financial is also in talks with Apple regarding the potential card partnership, as per the first source. Both sources preferred to remain anonymous while discussing confidential discussions.
Multiple financial institutions are competing to fill the void left by Goldman, which originally launched the credit card with Apple in 2019. While other lenders are enticed by the opportunity to collaborate with Apple, a globally recognized brand, they have concerns about the original deal terms being too risky and unprofitable, sources revealed in December 2023.
The discussions between Apple and Barclays have been ongoing for several months, with a potential deal still months away, as per the first source.
JPMorgan Chase has also been engaged in discussions with Apple regarding the partnership since the previous year, as reported by Reuters.
Representatives for Apple, Goldman Sachs, Barclays, and JPMorgan declined to provide comments. Synchrony did not respond immediately to a request for comment.
Goldman’s credit card agreement with Apple is set to last until 2030, but Goldman CEO David Solomon indicated that the partnership might conclude earlier than that during an earnings call on Wednesday.
In 2024, Goldman transferred its General Motors credit card business to Barclays, allowing customers to earn and redeem reward points on new Buicks, Cadillacs, and other GM vehicles, including electric cars. This deal enabled Barclays to expand its card presence in the United States.
Goldman first entered the consumer sector nearly ten years ago in an effort to diversify its revenue streams beyond trading and investment banking. By late 2022, the firm decided to scale back its retail aspirations after setting aside significant funds to cover potential losses in the consumer business.