Chase and Apple Discussing Purchase of Goldman Credit Card Portfolio
Back in August, Apple gave Goldman Sachs a proposal to end their consumer banking partnership within the next 12-15 months. Since then, Apple has been working to find a new credit card issuer.
The Wall Street Journal reported this week that Apple is in talks with JPMorgan Chase about taking over the Apple Card portfolio from Goldman Sachs. The report also reveals that Apple has held talks with several potential partners, including Capital One and Synchrony Financial.
Currently, Apple Card has around $17 billion in outstanding balances across 12 million users. The team at JPMorgan negotiating the deal wants to pay less than the full face value of the outstanding balances in the Apple card program.
JPMorgan has also reportedly wants to change “key components” of the Apple Card. This includes eliminating the current billing system, where all cardholders receive their statement at the beginning of the month. This has led to customer service and logistical challenges for Goldman Sachs.
Talks are still in the early stages and any potential deal could still be months away.
The Apple Card launched in 2019 as a cash-back card for Apple fans. With a $0 annual fee, 3% back in Daily Cash on eligible Apple purchases and 2% back on Apple Pay purchases, the card is a decent option for those who use the Apple digital wallet.
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