Apple is in talks with Barclays and Synchrony Financial to replace Goldman Sachs as its credit card partner, sources say. Goldman, which launched the Apple Card in 2019, is retreating from consumer finance, prompting several financial firms to vie for the partnership. Despite the appeal of working with Apple, potential partners are cautious about the deal’s financial risks. Negotiations with Barclays have been ongoing for months, but a final agreement may still take time.
Goldman’s current credit card deal with Apple is set to last until 2030, but CEO David Solomon hinted it could end sooner. The bank has been scaling back its consumer business after facing significant losses. JPMorgan Chase has also been in discussions with Apple about taking over the partnership. Representatives from Apple, Goldman, Barclays, and JPMorgan have declined to comment on the matter.
Goldman’s withdrawal from consumer finance follows its recent transfer of the General Motors credit card business to Barclays, allowing the British bank to expand its presence in the U.S. Goldman initially entered the consumer sector to diversify its revenue beyond investment banking and trading, but by 2022, it shifted focus back to its core strengths. The outcome of Apple’s search for a new partner will shape the future of its credit card business.