Apple is currently in discussions with Barclays to possibly take over from Goldman Sachs as their credit card partner, according to two sources familiar with the matter. The move comes as Goldman Sachs retreats from its consumer finance endeavors.
Additionally, the credit card issuer Synchrony Financial is reportedly in talks with Apple regarding a potential card partnership, as indicated by the first source. However, both sources have chosen to remain anonymous due to the private nature of the discussions.
Various financial institutions are competing for the opportunity to replace Goldman Sachs, with the original deal dating back to 2019, the sources revealed. While many lenders are enticed by the prestige of collaborating with Apple, negotiations appear to be complex, with the discussions between Apple and Barclays having been ongoing for several months and still requiring more time to finalize a deal.
Furthermore, JPMorgan Chase has also been in discussions with Apple about the business since the previous year, as reported by Reuters.
Apple, Goldman Sachs, Barclays, and JPMorgan declined to comment, while Synchrony has not responded to requests for comment.
Goldman Sachs' credit card partnership with Apple is set to continue until 2030, although Goldman's CEO, David Solomon, hinted that the partnership may conclude sooner in remarks to analysts. Moreover, in 2024, Goldman transferred its General Motors credit card business to Barclays, allowing customers to earn and redeem reward points on a variety of vehicles, including electric cars, helping Barclays enhance its presence in the U.S.
Goldman initially ventured into the consumer business approximately a decade ago, seeking to diversify its revenue streams beyond trading and investment banking. However, by late 2022, the Wall Street institution opted to scale back its retail initiatives after earmarking substantial funds to mitigate potential losses in this sector.