Apple is said to be in advanced talks with JPMorgan Chase regarding the takeover of the Apple Card program, which is presently overseen by Goldman Sachs. This shift follows Goldman Sachs’ choice to terminate its collaboration with Apple due to substantial financial setbacks and a strategic pivot in its consumer finance strategy.
Negotiations between Apple and JPMorgan Chase commenced early last year but have recently gained momentum, with Apple signaling that JPMorgan is its favored partner to succeed Goldman Sachs. Even though the current agreement with Goldman Sachs is scheduled to run until 2030, an earlier conclusion may be possible as suggested by Goldman’s CEO.
The Apple Card partnership includes both the credit card itself and the Apple Card Savings Account, a high-yield savings option exclusive to Apple Card holders. JPMorgan Chase currently does not provide a comparable high-yield savings account, raising concerns about whether it would take on this element of the arrangement.
Goldman Sachs continues to offer its Marcus high-yield savings account, which might result in a situation where the Apple Card switches to Chase while the savings account remains with Goldman. Furthermore, there are apprehensions regarding the financial sustainability of the existing Apple Card conditions, which feature no fees apart from interest, up to 3% cash back, and 0% financing on Apple purchases. Modifications to these conditions may be required to entice a new partner.
In addition to JPMorgan Chase, Apple has also been in talks with various other financial entities, including Synchrony, American Express, and Capital One. However, at this moment, JPMorgan Chase seems to be the frontrunner to assume control of the Apple Card partnership.
