JPMorgan Negotiates to Acquire Apple’s Credit Card Portfolio from Goldman Sachs

JPMorgan Chase has reportedly held preliminary discussions with Apple about potentially taking over the credit card program currently managed by Goldman Sachs. According to sources familiar with the matter, the talks are still in their early stages and there is no guarantee that an agreement will be reached.

The current issuer of the Apple credit card, Goldman Sachs, and Apple agreed last year to end their partnership. However, as of now, the companies have not finalized a new issuer to take over the program.

JPMorgan Seeks To Negotiate Terms And Change Program

Apple and JPMorgan Chase already have an existing relationship, which includes providing deals on Apple products to Chase customers and the bank compensating Apple each time a Chase cardholder uses Apple Pay.

Despite these existing ties, JPMorgan is negotiating to pay less than the full value for the existing balances of the Apple credit card program. Additionally, he seeks to modify some aspects of the program, including changing Apple’s requirement that cardholders receive their statements at the beginning of the month.

The report revealed that Apple’s credit card program includes subprime exposure and terms that could be costly for any issuer. In November, it was reported that Apple proposed exiting its credit card agreement with Goldman Sachs within the next 12 to 15 months, even though the program was initially set to continue through 2029.

Chase Emerges As A Candidate To Replace Goldman Sachs

Goldman Sachs entered the credit card market in 2019 but began retreating from the sector four years later due to significant losses and challenges in building a comprehensive consumer operation. By early 2023, Goldman Sachs informed Apple of its intention to divest from the partnership.

Chase could be a likely candidate to take over the Apple credit card program due to the strong relationship between the two companies. Chase was one of the first partners for Apple Pay, manages a portion of Apple’s approximately $60 billion in cash reserves, and is a major credit card partner for transactions at Apple retail stores.

The ongoing negotiations reflect the evolving dynamics in the financial and tech sectors, with JPMorgan Chase potentially stepping in to fill the role currently held by Goldman Sachs as Apple seeks a new issuer for its credit card program.

Apple’s credit card, called Apple Card, came out in August 2019 in collaboration with Goldman Sachs. It fits perfectly with Apple’s ecosystem and offers features that tech-minded users like. It’s available in the Wallet app on iOS devices and is designed for ease, security, and a great user experience.