Customise Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorised as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyse the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customised advertisements based on the pages you visited previously and to analyse the effectiveness of the ad campaigns.

No cookies to display.

Search
Close this search box.

Overview of Barclays and Synchrony Financial’s Bid to Acquire Apple’s Credit Card Division

Introduction

After facing significant losses, Goldman Sachs has been looking to sell its Apple Card portfolio, signaling its exit from the consumer banking market. Reports indicate Synchrony Financial might step in as a potential partner for Apple, alongside earlier interest from JPMorgan. The sale comes after challenges, including regulatory penalties and high delinquencies within the portfolio. As Apple explores its options for a new partner, this development could impact the future of its credit card business.

Read latest fintech articles: Sustainable Finance and Financial Inclusion: The Growing Intersection

FAQs

What led Goldman Sachs to sell the Apple Card portfolio?

Goldman Sachs has faced challenges in its consumer banking ventures, including losses and regulatory penalties. The Apple Card portfolio’s high delinquency rates and defaults further contributed to its decision to step away from the partnership.

Who might replace Goldman Sachs as Apple’s partner?

Synchrony Financial is reportedly in talks to take over the Apple Card portfolio, while JPMorgan expressed earlier interest. Barclays, which acquired a portfolio from Goldman last year, could also be a contender given its strategy of partnering with major brands.

What was the impact of regulatory penalties on the sale?

The Consumer Financial Protection Bureau imposed an $89 million penalty on Apple and Goldman Sachs for mishandling transaction disputes and misleading practices. This penalty highlighted operational issues and added to the urgency for Goldman Sachs to exit the partnership.

Conclusion

Goldman Sachs’ decision to exit the Apple Card partnership marks a significant shift in its strategy as it steps away from consumer markets. With potential buyers like Synchrony Financial and JPMorgan, the Apple Card portfolio may see a transition to a new partner. This change reflects the complexities of maintaining a competitive edge in the financial sector while navigating regulatory challenges and consumer demands. As the sale progresses, the outcome will likely shape the future of Apple’s credit card offerings and its partnerships in the financial industry.

The Rise of Neo-Banks: Transforming Financial Access in Emerging Markets

The Role of Open Banking in Driving Financial Inclusion

Fintech for Women’s Financial Empowerment

Cross-Border Payments: Improving Access to Financial Services in Emerging Economies

The Future of Digital Wallets and Payment Systems for the Unbanked

Read: Fintech in Hospitality: Top 10 Fintech Solutions for Hotels

To participate in our interviews, please write to us at news@intentamplify.com
Share With
Contact Us
StatCounter - Free Web Tracker and Counter