Barclays is reportedly in talks with Apple to become the tech giant’s credit card partner, as Goldman Sachs’ deal approaches its end.
According to Reuters, negotiations between Barclays and Apple have been ongoing for some time, though the outlet’s sources acknowledge it may take months to secure a deal.
If successful Barclays would replace Goldman Sachs, which launched the credit card with Apple in 2019. This original agreement lasts until 2030 but could end sooner, with the news outlet’s sources saying that the deal’s current terms are risky and unprofitable.
Barclays isn’t the only financial institution in the running to secure an agreement, however. Credit card issuer Synchrony Financial has also been named, alongside older reports that suggest JPMorgan Chase is also in the race.
As of late, Barclays has seen credit cards as a method of solidifying its presence in North America. Last November, the consumer bank extended its co-branded credit card programme with RCI, a global travel network.
Additionally, starting this summer, Barclays will become the exclusive issuer of the GM Rewards Mastercard and the GM Business Mastercard in the US.
Announced last October, this deal is particularly relevant to the current Apple negotiations, as it saw Goldman Sachs transfer the responsibility to Barclays.
Commenting on the General Motor deal, Denny Nealon, CEO of Barclays US Consumer Bank, said: “Barclays is thrilled to partner with General Motors, a truly iconic brand that has defined our country’s love of the automobile for over a century.
“As a leading and experienced player in the U.S. partner card market with a winning formula for growing partner programs, we look forward to helping GM create an industry-leading credit card product that unlocks new value for customers and drives successful business outcomes for GM.”
In the backdrop of Barclay’s US expansion is Goldman Sachs’ clear decision to scale down its retail ambitions.
The relationship between Goldman Sachs and Apple was tested last October when the Consumer Financial Protection Bureau (CFPB) fined both organisations $89m for misleading customers and customer service breakdowns.
Following an investigation, the CFPB found that Apple failed to send tens of thousands of consumer disputes of Apple Card transactions to Goldman Sachs. Furthermore, when Apple did send disputes to the bank, Goldman Sachs did not follow numerous federal requirements for investigating the disputes.
Barclays has declined to comment on the reports.