The six-year-long Apple Card partnership between Goldman Sachs and Apple might end sooner than expected. Previous reports suggested that the private bank wasn’t happy with the collaboration, and Apple had discussed offering its finance features to other providers.
For the past year and a half, we’ve heard stories about Chase, Synchrony Financial, and other companies trying to understand if a deal with Apple could be profitable, as Goldman Sachs reportedly lost billions of dollars trying to build out this full-service operation.
Now, Reuters reports that Barclays could replace Goldman Sachs as Apple’s credit card partner. Just like the Chase rumor, Barclays could be a more suited partner, as it already has retail bank experience, and they don’t need to create an operation from scratch. In addition, Barclays could help the card expand to other regions.
While negotiations between Apple and Barclays have been ongoing for several months, JPMorgan Chase is also continuing to discuss a potential partnership. Synchrony Financial is another player interested in the potential deal.
Still, Reuters sources say that even though these companies want the Apple Card partnership, they view the original deal terms as “risky and unprofitable,” so it’s possible that Apple might have to change its current programs and offerings.
While the companies didn’t comment on the matter, Goldman CEO David Solomon told analysts on an earnings call on Wednesday that the bank may end the partnership with Apple sooner than expected. Technically, the two companies would continue the deal until 2030.
Over the past few years, Apple and Goldman Sachs have released the Apple Pay Later and Apple Card Savings Accounts initiatives through the Apple Card partnership. Still, compared to other cards, Apple’s option has been one of the less exciting for customers.
When it was released, it felt premium and easy to use and control. However, other banks continued to evolve their offerings, while Apple and Goldman Sachs lost themselves along the way.
A partnership with another bank could benefit Apple, its customers, and Goldman, which would stop losing money. BGR will let you know once we learn more about the potential new partner or when Apple announces its next steps.
