Apple Inc. (AAPL.O) is actively negotiating with Barclays (BARC.L) to replace Goldman Sachs (GS.N) as its credit card partner, according to sources familiar with the discussions. Goldman Sachs, which launched the Apple Card in 2019, is stepping back from consumer finance initiatives, prompting Apple to seek a new partner for its credit card operations.
Synchrony Financial (SYF.N) is also reportedly in talks with Apple about taking over the partnership, signaling a competitive race among financial firms to align with one of the world’s most influential tech companies.
Goldman Sachs Shifts Focus Away from Consumer Finance
The move comes as Goldman Sachs winds down its consumer finance ambitions. Despite a deal extending until 2030, CEO David Solomon hinted that the partnership could end sooner. Goldman initially entered the consumer market to diversify its revenue streams but has since scaled back after incurring significant losses in the sector.
Goldman’s retreat from consumer finance was underscored in 2024 when it transferred its General Motors (GM.N) credit card portfolio to Barclays. The deal expanded Barclays’ U.S. footprint and showcased the bank’s readiness to handle high-profile credit card agreements.
Negotiations between Apple and Barclays have been ongoing for months, although a final agreement may still be some time away. Synchrony Financial, known for its co-branded credit card offerings, is also vying for the partnership, adding another layer of competition to the discussions.
JPMorgan Chase (JPM.N) has also reportedly been in talks with Apple since 2023, making it one of several financial institutions eager to collaborate with the tech giant.
While partnering with Apple presents a unique opportunity to align with one of the world’s most valuable brands, sources suggest that some firms remain cautious due to the challenging terms of the original deal with Goldman, which many viewed as unprofitable.
Apple’s Strategic Vision for Financial Services
Apple’s credit card, launched as part of its broader push into financial services, offers unique features such as cash-back rewards and seamless integration with Apple Pay. The company’s pursuit of a new partner indicates its commitment to expanding its financial offerings, even as it navigates the challenges of replacing an established partner like Goldman Sachs.
The potential transition also reflects Apple’s ability to attract interest from multiple financial institutions, underlining its significant leverage in negotiations.
Future Implications for Apple and Its Credit Card Users
Replacing Goldman Sachs could mark a turning point for Apple’s financial services, potentially introducing new features, rewards, or user benefits under a new partner. For Goldman, exiting the Apple Card partnership would further signal its retreat from retail banking, allowing it to refocus on its core strengths in trading and investment banking.
As Apple considers its next move in the financial services space, the outcome of these negotiations will likely have significant implications for both the tech giant and the financial institutions vying for the partnership. Barclays, Synchrony, and other contenders now face a pivotal moment that could reshape their presence in the competitive credit card market.
