By Nupur Anand
NEW YORK – Apple is in talks with Barclays to replace Goldman Sachs as the tech giant’s credit card partner, two sources familiar with the matter said, as the Wall Street giant backs away from its ambitions in terms of consumer credit.
Credit card issuer Synchrony Financial is also in discussions with Apple about the card partnership, the first source said. Both sources declined to be identified as they discussed private discussions.
Several financial firms are vying to replace Goldman, which launched the credit card with Apple in 2019, the sources said. While other lenders are tempted to work with Apple, one of the world’s best-known brands, they also view the initial terms of the deal as risky and unprofitable, sources told Reuters in December 2023.
Negotiations between Apple and Barclays have been going on for several months, but it may still take months to reach an agreement, the first source said.
JPMorgan Chase has also been in talks with Apple about the business since last year, Reuters previously reported.
Representatives for Apple, Goldman, Barclays and JPMorgan declined to comment. Synchrony did not immediately respond to a request for comment.
Goldman’s credit card deal with Apple lasts through 2030, but the partnership could end sooner than that, Goldman CEO David Solomon told analysts on an earnings conference call Wednesday .
In 2024, Goldman moved its General Motors credit card business to Barclays, which allows customers to earn and redeem rewards points on new Buicks, Cadillacs and other GM cars, including electric vehicles. The deal allowed Barclays to expand its card presence in the United States.
Goldman entered the consumer sector nearly a decade ago, aiming to expand its revenue beyond its traditional pillars of trading and investment banking. At the end of 2022, the Wall Street powerhouse decided to scale back its retail ambitions after setting aside billions of dollars to cover potential losses in the business.
(Reporting by Nupur Anand in New York; Additional reporting by Saeed Azhar in New York and Stephen Nellis in San Francisco; Editing by Lananh Nguyen and Jamie Freed)
