JPMorgan Chase could replace Goldman Sachs as the Apple Card banking partner. Apple and JPMorgan have been discussing a potential partnership since early this year.
Despite this, a potential deal between the two companies could take several months to finalize.
JPMorgan and Apple discussing potential Apple Card collaboration
Reports of Goldman Sachs wanting out of its partnership with Apple over the Apple Card first emerged in June 2023. It wants to end the partnership due to heavy losses. Supposedly, Apple sent a proposal to Goldman Sachs to exit the agreement within the next 12-15 months back in November 2023.
Due to Goldman Sachs’s exit, Apple is looking for a new banking partner for Apple Card. A Wall Street Journal report claims the company is in talks with JPMorgan Chase to take over. Discussions between the two companies began earlier this year and are still ongoing. Finalizing the terms can still take a few more months.
The talks can still fall through, especially since JPMorgan wants to make other changes to how Apple Card works. This includes changing the billing cycle, where all customers get their statements at the beginning of the month. Goldman Sachs also faced issues with Apple Card’s billing cycle.
It also purportedly wants to pay “less than the full face value” of the approximately $17 billion outstanding balance across cards.
Apple in talks with multiple banks for Apple Card partnership
Besides JPMorgan Chase, Apple held discussions with Synchrony Financial, Captial One, and American Express.
A November 2023 report detailed that Goldman Sachs executives blame Apple Card for the bank’s increased regulatory scrutiny. It’s also unhappy with being forced to approve all applicants who apply, pushing up its losses.
Despite all these behind-the-scenes issues, customers love the Apple Card. For four consecutive years, it ranked number one in J.D. Power’s customer satisfaction ratings.
