Apple Explores New Credit Card Partners as Goldman Sachs Reevaluates Deal

Apple Inc. (NASDAQ:AAPL) is reportedly in talks with Barclays (NYSE:BCS) and Synchrony Financial (NYSE:SYF) to replace Goldman Sachs Group Inc. (NYSE:GS) as its credit card partner, according to Reuters. Discussions with Barclays have been ongoing for months, though a final deal could take more time. The tech giant is also exploring partnerships with JPMorgan Chase & Co. (NYSE:JPM).

The potential change comes as Goldman Sachs CEO David Solomon indicated the bank might exit its Apple Card partnership before the contract ends in 2030. Signed in 2019, the Apple Card deal has weighed heavily on Goldman’s financial performance, reducing its return on equity by at least 75 basis points in 2024.

Goldman’s venture into consumer finance, including the Apple Card, was intended to diversify its revenue streams but has proven unprofitable. This has prompted the bank to rethink its retail finance strategy. In 2024, Goldman transferred its General Motors Company (NYSE:GM) credit card portfolio to Barclays.

Both Goldman and Apple faced a $90 million fine by the Consumer Financial Protection Bureau last year over issues related to the card, adding further strain to the partnership.

Apple’s pursuit of new credit card partnerships aligns with its broader efforts to enhance financial services and maintain the Apple Card as a key product within its ecosystem. Barclays and Synchrony Financial could offer new opportunities to expand the card’s reach and profitability.

This development underscores the challenges and shifts in the consumer finance industry, as major players like Apple and Goldman Sachs adapt to changing market conditions and strategic priorities.

Keywords: Apple Card, Goldman Sachs, Barclays, Synchrony Financial, JPMorgan Chase, credit card partners, consumer finance, financial services.