JPMorgan Chase Considers Partnership with Apple for Apple Card

JPMorgan Chase and Apple Card Partnership

JPMorgan Chase is in talks with Apple to potentially become the new issuer of the Apple Card, currently managed by Goldman Sachs. The discussions, which began earlier this year, have gained momentum in recent weeks, though a final agreement could be months away.

JPMorgan already collaborates with Apple on product deals for Chase customers and processes Apple Pay transactions for its cardholders. This potential deal would strengthen ties between America's largest bank and the tech giant as the talks center on JPMorgan taking over the existing Apple Card portfolio, valued at approximately $17 billion.

However, the bank is reportedly seeking to acquire these balances at a discount, citing concerns over the portfolio's performance. Goldman Sachs, Apple's credit card partner since 2019, decided to exit the partnership last year as part of its retreat from consumer banking due to regulatory scrutiny and higher-than-anticipated losses.

With over 12 million users, the bank sees potential in accessing Apple's loyal customer base. Nevertheless, several hurdles remain before any deal can be finalized, as JPMorgan is pushing for changes to the card's features, including a unique billing structure that has caused operational challenges for Goldman Sachs.