Just yesterday, David Solomon, the CEO of Goldman Sachs, indicated that the financial institution’s partnership with Apple may be reaching its conclusion sooner than expected. According to a report from Reuters, Apple is currently engaging in discussions with Barclays and Synchrony Financial about the possibility of replacing Goldman Sachs as the partner for its Apple Card.
The difficulties faced by Goldman in the consumer credit sector have been extensively reported over the past 18 months. The bank has incurred billions in losses related to its consumer credit card services and has significantly downsized various elements of that business, including the personal loans it offered under the Marcus brand.
Additionally, Goldman Sachs has ended its collaboration with General Motors, transferring the GM credit card operations to Synchrony Financial.
The latest report from Reuters cites reliable sources indicating that Apple is in negotiations with Barclays and Synchrony Financial regarding a potential takeover of the Apple Card partnership. Importantly, Apple is already partnered with Barclays for financing options in the UK.
Previously, The Wall Street Journal reported that Apple had been in discussions with JP Morgan Chase and Capital One for a possible transition of the partnership.
At this moment, it remains uncertain which contender is the leading candidate to succeed Goldman as the financial backer of the Apple Card. Goldman also supports Apple’s Apple Card Savings Account, with their current agreement extending to 2030. However, Solomon has acknowledged that there is “some possibility that it won’t continue until that time frame.”
A recurring theme in these reports is that whoever assumes control of the Apple Card may implement “key changes” to the existing product. As it stands, the Apple Card provides attractive interest-free financing on Apple purchases and waives fees, making it an appealing choice for consumers but also contributing to considerable losses for Goldman.
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