The potential shift comes as Goldman scales back its consumer finance operations, including its partnership with the tech giant. In addition to Barclays, Synchrony Financial is also in talks with Apple regarding the card partnership, according to one source. Discussions with Barclays have been ongoing for several months, though a finalised agreement could still be months away. JPMorgan Chase has also expressed interest in taking over the business, as previously reported by Reuters.
The Apple Card, which launched in collaboration with Goldman Sachs in 2019, has attracted significant attention from financial institutions due to Apple's global brand recognition. However, some lenders have expressed concerns about the original terms of the deal, which they perceived as risky and potentially unprofitable.
Goldman's partnership with Apple is currently set to last until 2030. However, during a recent earnings call, Goldman’s CEO indicated that the arrangement could end sooner. The firm has been reevaluating its consumer finance strategy after years of financial setbacks, including billions of dollars allocated to cover potential losses.
In 2024, Goldman transferred its General Motors credit card business to Barclays, enabling Barclays to expand its presence in the US credit card market. This prior deal, which focuses on GM vehicle rewards, may signal Barclays' interest in further growing its card portfolio by partnering with Apple.
Representatives for Apple, Goldman Sachs, Barclays, and JPMorgan declined to comment on the ongoing negotiations. Goldman initially entered the consumer finance space nearly a decade ago in an effort to diversify its revenue streams beyond investment banking and trading. However, by late 2022, the firm began scaling back its retail ambitions, marking a shift in its long-term strategy.
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