Apple’s partnership with Goldman Sachs for the Apple Card could be coming to an end, with a new report from The Wall Street Journal indicating that discussions are underway for a new banking partner.
JPMorgan Chase has reportedly entered negotiations with Apple to potentially take over the credit card program, marking a major shift for Apple’s growing financial services portfolio. While the process is still in its early stages, sources suggest that talks have gained momentum in recent weeks.
This potential transition comes after years of collaboration between Apple and Goldman Sachs, which launched the Apple Card in 2019. Despite the card’s initial success, Goldman Sachs has faced challenges in maintaining the program. Issues like customer service struggles tied to Apple Card’s billing cycles and high operational costs have reportedly motivated Goldman to explore an exit strategy.
JPMorgan Chase, a heavyweight in the credit card industry, is now positioning itself as a leading candidate to take over the reins. However, the bank is reportedly seeking specific terms to ensure a smooth transition. Among them is a request to pay less than the face value of Apple Card’s outstanding balances, currently estimated at $17 billion. Chase is also looking to address the billing cycle structure that has caused some friction between Apple and Goldman Sachs customers.
Interestingly, Apple has been exploring multiple options as it navigates this change. In addition to JPMorgan Chase, Apple has held talks with Synchrony Financial and Capital One about the future of the Apple Card program. Meanwhile, Goldman Sachs has pursued its own discussions with American Express in search of a solution for winding down its involvement.
While nothing is set in stone yet, the possible partnership between Apple and JPMorgan Chase could have significant implications for Apple Card users. With a reputation for delivering premium credit card services, Chase may bring new features or enhanced rewards to the Apple Card, providing a fresh boost to the product.
