JPMorgan Chase Negotiates to Become New Partner for Apple Card
Potential Partnership Between JPMorgan Chase and Apple
JPMorgan Chase is in discussions with Apple to potentially become the new issuer of the Apple Card, which is presently managed by Goldman Sachs. This vital dialogue, which started earlier this year, has gained traction in recent weeks, although a final agreement is yet to be reached.
Strengthening Ties Between Tech and Finance
- JPMorgan already collaborates with Apple on product deals for Chase customers.
- They process Apple Pay transactions for cardholders.
- This potential deal could strengthen ties between America's largest bank and the tech giant.
Challenges Ahead for the Apple Card Portfolio
The discussions involve JPMorgan taking over the existing Apple Card portfolio, valued at approximately $17 billion. However, the bank seeks to acquire these balances at a discount due to concerns regarding performance.
Goldman Sachs has been Apple's credit card partner since 2019, but decided to exit the partnership last year amid regulatory scrutiny and losses. With over 12 million users, there are concerns about the Apple Card's features and operational challenges.
- JPMorgan is advocating for changes to the card's billing structure.
- Several hurdles remain before any deal can be finalized.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.