Written by Nupur Anand
NEW YORK – Apple (NASDAQ:) is in talks with… Barclays (LON:) to replace Goldman Sachs as the technology giant's credit card partner, two sources familiar with the matter said, as the Wall Street giant steps back from its consumer finance ambitions.
Credit card issuer Synchrony Financial (NYSE:) is also in discussions with Apple about a card partnership, the first source said. The two sources refused to reveal their identities while discussing the private talks.
The sources said several financial companies are vying to replace Goldman, which launched the credit card with Apple in 2019. Sources told Reuters in December 2023 that while other lenders are inclined to work with Apple, one of the world's most recognizable brands, they are looking at… It also referred to the terms of the original deal as risky and unprofitable.
The first source said that negotiations between Apple and Barclays have been ongoing for several months, but it may take months to reach an agreement.
Reuters previously reported that JPMorgan Chase (NYSE:) has also been in talks with Apple about the business since last year.
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 runs through 2030, but the partnership could end sooner than that, Goldman CEO David Solomon told analysts on an earnings call on Wednesday.
In 2024, Goldman transferred its General Motors (NYSE:) credit card business to Barclays which allows customers to earn and redeem reward points on new Buicks, Cadillacs and other General Motors vehicles, including electric vehicles. The deal enabled Barclays to expand its card range in the US
Goldman entered the consumer business market nearly a decade ago, aiming to expand its revenue beyond its traditional mainstays of trading and investment banking. By late 2022, the Wall Street firm decided to scale back its retail ambitions after setting aside billions of dollars to cover potential business losses.
