Apple (NASDAQ:AAPL) is making its branded credit card more exclusive. On Tuesday, Bloomberg reported that the tech giant has abandoned its long-standing card partnership with U.K.-based bank Barclays (NYSE:BCS) in a move that clearly favors, and is sure to benefit, its native Apple Card product.
Through the partnership, eligible holders of the Barclaycard Financing Visa could obtain 0% financing for Apple products. This made the card attractive for those desiring expensive Apple laptops or other high-end devices, but hesitant to pay their lofty prices in one go.
At the beginning, the card actually had Apple branding, as the Barclaycard Visa with Apple Rewards.
It is unclear whether new features of the Barclaycard Financing Visa will be introduced to the card to compensate for the rescinding of Apple perks.
The writing was on the wall with the introduction of the Apple Card in 2019, a product that is offered in partnership with white-shoe investment bank Goldman Sachs. Similar to the old terms with the Barclays card, Apple Card holders can use interest-free financing for a range of the company's goods.
Apple also attempts to rope in cardholders with no annual fees, cash back of up to 3% on purchases, and a break on several traditional fees.
Neither Apple nor Barclays has made an official statement on the demise of their credit card partnership. The media reports are based on an Apple company memo sent to retail employees.
On Wednesday, Apple shares closed down by nearly 3%, a steeper fall than that of the broader stock market.