Just a day after the Goldman Sachs CEO said that his company's deal to service Apple Card customers may end early, two banks are said to be in active discussions to take over.
Apple Card
Barclays and Synchrony Financial are the latest names tied to discussions about taking over Apple Card. A report published late on Wednesday by Reuters discussed the pair entering discussions with Apple and Goldman Sachs about Apple's credit card.
Sources familiar with the matter cited in the report say that the discussions are ongoing. They have been going on for months, apparently, and it's not clear where in the process the negotiations stand.
Apple has worked with Barclay's in the past. The bank and Apple had a Barclaycard Visa with Apple Rewards, with users able to earn rewards towards future Apple or iTunes purchases at the time.
That partnership started to wind down in 2020 after it discontinued special financing of Apple gear for cardholders. On May 7, 2021, cardholders received a Barclays View MasterCard, which earned points toward MasterCard benefits instead of Apple-specific benefits
Apple has a relationship with Synchrony Financial now. The company uses Synchrony Financial for a buy-now, pay-later option when checking out with Apple Pay.
Goldman Sachs partnered with Apple in 2019 to launch the Apple Card. While the card gained popularity among Apple customers, Goldman Sachs was bleeding cash from the deal.
The company reportedly lost $1.2 billion in 2022 because of Apple Card. The unit that hosted Apple Card, the platform solutions unit, posted an $859 million net loss in 2024.
In October 2024, the Consumer Financial Protection Bureau (CFPB) fined Goldman Sachs more than $90 million for missteps related to the Apple Card. The agency scrutinized Goldman Sachs for billing errors, dispute resolution, and compliance with the Fair Credit Billing Act.
The CFPB found Goldman Sachs struggled to meet regulatory consumer credit standards. This is all despite its reputation as a global investment bank known for its expertise in financial services -- just not consumer-level credit cards prior to Apple Card.
These challenges led Goldman Sachs to explore an early exit from the partnership. By 2023, Goldman Sachs began informal discussions about transferring its role as the Apple Card issuer. At the time, JPMorgan Chase emerged as a potential replacement, but those discussions apparently bore no fruit.
A change of banks for the Apple Card could impact Apple Savings, as the feature is currently backed by Goldman Sachs. If Apple transitions to a new banking partner, such as JPMorgan Chase, it may require adjustments to the savings account infrastructure, potentially disrupting account management and Daily Cash reward deposits.
Goldman Sachs is contractually obligated to support Apple Card through 2030.