Apple in talks with Barclays, Synchrony to replace Goldman in credit card deal, sources say

Synchrony Financial

16/01/2025 11:30

(Repeats story from Wednesday with no changes to text)
    By Nupur Anand
       NEW YORK, Jan 15 - Apple  AAPL.O  is in talks with
Barclays  BARC.L  to replace Goldman Sachs  GS.N  as the tech
giant's credit card partner, said two sources familiar with the
matter, as the Wall Street giant steps back from its consumer
finance ambitions.
    Credit card issuer Synchrony Financial  SYF.N  is also in
discussions with Apple about the card partnership, the first
source said. Both sources declined to be identified discussing
private talks.
    Several financial firms are vying to replace Goldman, which
launched the credit card with Apple in 2019, the sources said.
While other lenders are tempted by working with Apple, one of
the world's most recognizable brands, they also viewed the
original deal terms as risky and unprofitable, sources told
Reuters in December 2023. 
    Negotiations between Apple and Barclays have been ongoing
for several months, but it may still take months to strike a
deal, the first source said. 
    JPMorgan Chase  JPM.N  has also been in talks with Apple
about the business since last year, Reuters reported previously.
    Representatives for Apple, Goldman, Barclays and JPMorgan
declined to comment. Synchrony did not immediately respond to a
request for comment. 
    Goldman's credit card deal with Apple lasts until 2030, but
the partnership may end sooner than that, Goldman CEO David
Solomon told analysts on an earnings call on Wednesday.
    In 2024, Goldman transferred its General Motors  GM.N 
credit card business to Barclays that allows customers to earn
and redeem reward points on new Buicks, Cadillacs and other GM
cars, including electric vehicles. The deal enabled Barclays to
expand its card footprint in the U.S.
    Goldman entered the consumer business nearly a decade ago,
aiming to broaden its revenue beyond its traditional mainstays
of trading and investment banking. By late 2022, the Wall Street
powerhouse decided to scale down its retail ambitions after
setting aside billions of dollars to cover potential losses in
the business.

 (Reporting by Nupur Anand in New York; Additional reporting
from Saeed Azhar in New York and Stephen Nellis in San
Francisco; Editing by Lananh Nguyen and Jamie Freed)
 ((Nupur.Anand@thomsonreuters.com; +1 646 240 2975;))