We have recently learned that Goldman Sachs is ending its years of relationship with Apple, and the termination could happen sooner rather than later. While the future of Apple Card looks bleak at this stage, we are now hearing that the company is in talks with two partners to take over the segment. The details are not final at this stage, but it looks like Barclays or Synchrony Financial could replace Goldman Sachs as the Cupertino giant's partner for all Apple Card-related business.
Apple is in talks with two more banks to acquire the Apple Card business from Goldman Sachs
Apple Card stirred up the financial aspect for Goldman Sachs, and the decision to terminate was the last thing that Apple wanted. The bank has struggled to take the necessary actions in the consumer credit business over the past 18 months, which has resulted in the loss of billions of dollars. With major losses at hand, the bank even took back most of its offerings, including personal loans offered through its Marcus brand.
Note that Goldman Sachs is not letting go of its business with Apple alone, but General Motors as well, and the latter's credit card will be transferred to Synchrony Financial. Reuters reports that Goldman Sach's Apple Card agreement will either be transferred to Barclays or Synchrony Financial. Take note that the company already works with Barclays in the UK, which would make it a wise choice for Apple, but it remains to be seen if the same bank will cater to the North American market or if Synchrony Financial would meet the cut.
Apart from these two options, we have also previously covered that Apple was potentially in talks with Morgan Chase and Capital One for the same reason. While a handful of options are available for Apple, it remains to be seen which bank would receive the Apple Card agreement. Note that choosing a bank is only one side of the story, as Apple and the selected bank would have to make some wise choices and necessary compromises to increase the chances of survival.
Apple's partnership with Goldman Sachs will end in 2030, but the bank CEO, David Solomon, has confirmed that the relationship with Apple will be terminated sooner than expected. Apple Card offers lucrative interest-free financing for Apple purchases, and while it is an amazing offer for the end user, it became the reason why Goldman Sachs is ending its partnership with Apple due to the hefty losses. We will share more details on the transfer as soon as further information is available.
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