Yesterday, David Solomon, the CEO of Goldman Sachs, indicated that the firm’s partnership with Apple may come to an end sooner than expected. Now, Reuters has reported that Apple is negotiating with Barclays and Synchrony Financial to potentially replace Goldman Sachs as the partner for its Apple Card.
Goldman Sachs’ difficulties in the consumer credit sector have been widely reported over the past 18 months, with significant losses occurring in its credit card division. The bank has significantly reduced operations in this sector, including scaling back personal loans provided through its Marcus brand.
Additionally, Goldman Sachs has ended its partnership with General Motors, transferring the GM credit card operations to Synchrony Financial.
According to today’s report from Reuters, sources familiar with the situation indicate that Apple is in discussions about transferring the Apple Card partnership to Barclays or Synchrony Financial. It’s worth mentioning that Apple currently collaborates with Barclays for financing solutions in the UK.
Previously, The Wall Street Journal also reported that Apple is in conversation with JP Morgan Chase and Capital One regarding a potential partnership takeover.
At this stage, it remains uncertain which company is leading the race to succeed Goldman Sachs as the backer of the Apple Card. Goldman is also involved with Apple through the Apple Card Savings Account. Their agreement is set to last until 2030; however, Solomon has acknowledged that there is “some possibility” that this partnership might not reach that timeframe.
One recurring theme across various reports is that the new partner might implement “key changes” to the Apple Card offering. Presently, the Apple Card features attractive interest-free financing options for Apple purchases and doesn’t impose any fees. While these conditions make it very appealing for consumers, they have also contributed to Goldman’s substantial losses.
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