Apple is reportedly in talks with Barclays and Synchrony Financial to take over its Apple Card business, as its relationship with Goldman Sachs is set to end sooner than expected. The partnership, initially slated to run until 2030, has faced challenges, leading to significant losses for Goldman Sachs.
Goldman Sachs to End Apple Card Partnership Early
Goldman Sachs' CEO, David Solomon, confirmed that the Apple Card partnership could end earlier than 2030, due to substantial financial losses. The bank's platform solutions unit, which houses the Apple Card, reported an $859 million net loss in 2024. The Apple Card program, while beneficial to consumers with interest-free financing for Apple purchases, has proven to be a burden for Goldman Sachs.
Apple in Talks with Barclays and Synchrony Financial
As Goldman Sachs prepares to exit the partnership, Apple is exploring other options. Discussions are underway with both Barclays and Synchrony Financial to potentially take over the Apple Card business.
- Barclays: Apple already partners with Barclays in the UK, which could make this a seamless transition, but it's uncertain if Barclays would handle the North American market.
- Synchrony Financial: This bank is also in the running, having recently taken over General Motors' credit card business from Goldman Sachs.
Potential Challenges and Considerations
While Apple has multiple options, selecting the right bank is only part of the equation. Both Apple and the chosen bank will need to negotiate and compromise to ensure the long-term success and viability of the program. Other banks, such as JPMorgan Chase and Capital One, were also previously in talks with Apple for the same.
Looking Ahead
The future of the Apple Card is currently uncertain. We will continue to monitor the developments and share updates as more information becomes available. The transfer of the Apple Card business to a new partner will likely involve complex negotiations and adjustments.
