Just yesterday, Goldman Sachs CEO David Solomon confirmed that his company’s relationship with Apple could end sooner rather than later. Now, Reuters reports that Apple is in talks with Barclays and Synchrony Financial about replacing Goldman Sachs as its Apple Card partner.
Goldman’s struggles in the consumer credit business have been well-documented over the last 18 months. The bank has lost billions of dollars on its consumer credit card business. The company has scaled back significant parts of that business, including personal loans offered through its Marcus brand.
Goldman Sachs also exited its partnership with General Motors, passing off the GM credit card to Synchrony Financial.
Today’s report from Reuters cites sources familiar with the matter and says Apple is in talks with Barclays and Synchrony Financial about taking over the Apple Card agreement. Of note, Apple currently works with Barclays to provide financing in the UK.
The Wall Street Journal previously reported that Apple is in talks with JP Morgan Chase and Capitol One about taking over the partnership.
At this point, it’s unclear who the front runner is to replace Goldman as the backer of Apple Card. Goldman is also Apple’s partner for the Apple Card Savings Account. Goldman’s agreement with Apple runs until 2030, but Solomon has confirmed there is “some possibility that it won’t continue until that time frame.”
One common theme in the reporting is that whoever takes over the Apple Card could make “key changes” to the product. Currently, Apple Card offers enticing interest-free financing for Apple purchases and doesn’t charge any fees. These terms make it an incredibly compelling option for consumers, but have also contributed to Goldman’s massive losses.
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