Apple is reportedly in discussions with Barclays to take over as its credit card issuer, replacing Goldman Sachs.
Additionally, credit card issuer Synchrony Financial is also being considered as a potential partner for Apple, according to unnamed sources cited by Reuters.
Goldman Sachs has been seeking to offload the Apple card portfolio for over a year as part of its withdrawal from the consumer market, which has resulted in significant losses.
In October, the Consumer Financial Protection Bureau imposed an $89 million penalty on Apple and Goldman Sachs for mishandling credit card transaction disputes and misleading iPhone buyers regarding interest-free payment options.
Previous reports indicated that JPMorgan had shown interest in acquiring the credit card business but hesitated due to concerns over the valuation of the loan book, given the higher-than-average delinquency and default rates within the portfolio.
Barclays has a history of acquiring credit card operations, having previously taken over the General Motors card business from Goldman Sachs in October, as part of its strategy to strengthen partnerships with leading American brands.