Three Companies Are Now in the Running to Take Over the Apple Card
[[{“value”:”Apple is in talks with Barclays and Synchrony about becoming its new financial partner for the Apple Card, according to Reuters sources.
The report today added that Apple has also been holding discussions with Chase Bank owner JPMorgan since last year, so there are at least three potential companies in the running to take over the Apple Card from current partner Goldman Sachs.
Goldman Sachs had reportedly approached American Express about taking over the Apple Card a few years ago, as well, but nothing came of it. Apple’s credit card uses the Mastercard network, and that might have prevented an American Express takeover.
Goldman Sachs is in the process of winding down its consumer lending business, which has lost billions of dollars in recent years. On a recent earnings call, Goldman Sachs CEO David Solomon said the company is contracted to be the Apple Card’s lender until 2030, but he said there is a “possibility” that the partnership will end earlier.
In 2023, The Wall Street Journal reported that Goldman Sachs wanted out of the Apple Card partnership, but it has yet to part ways with Apple.
Last year, the U.S. Consumer Financial Protection Bureau fined Apple and Goldman Sachs nearly $90 million combined after finding the companies mishandled transaction disputes and misled iPhone users about interest-free payment options.
“Apple Card is one of the most consumer-friendly credit cards available, and was specifically designed to support users’ financial health,” said Apple, in response to the fine. “Upon learning about these inadvertent issues years ago, Apple worked closely with Goldman Sachs to quickly address them and help impacted customers.”
If the Apple Card does eventually get a new financial partner, it is unclear if there would be any major changes to the card’s features and policies.
Launched in 2019, Apple’s credit card remains available in the U.S. only.
This article, “Three Companies Are Now in the Running to Take Over the Apple Card” first appeared on MacRumors.com
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