Investing.com– Apple Inc (NASDAQ:AAPL) is in talks with Barclays (NYSE:BCS) to replace Goldman Sachs Group Inc (NYSE:GS) as its credit card partner, Reuters reported on Wednesday, as the investment bank seeks to temper its retail finance ambitions.
The tech giant is also in talks with credit card operator Synchrony Financial (NYSE:SYF) over a card deal, the Reuters report said.
News of the discussions comes just hours after Goldman CEO David Solomon said the bank may end its card deal with Apple before its contract ends in 2030. The Apple Card deal, which was signed in 2019, had dragged down Goldman’s return on equity by at least 75 basis points in 2024.
Wednesday’s report said that discussions between Apple and Barclays have been ongoing for several months, although it may take longer until a deal is reached. Reuters had previously reported that Apple was also in talks with JPMorgan Chase & Co (NYSE:JPM) over a card deal.
The Apple Card was part of Goldman’s foray into consumer finance over the past decade, as it attempted to diversify its revenue streams beyond its trading desk. But the foray has so far proven to be largely unprofitable, with the Apple Card being a particular weight on its financials.
Goldman and Apple were also fined $90 million by the Consumer Financial Protection Bureau last year over the card.
Goldman had transferred its General Motors Company (NYSE:GM) credit card business to Barclays in 2024.