Apple is nearing a deal with JPMorgan Chase to take over the Apple Card deal currently backed by Goldman Sachs, according to a new report from the Wall Street Journal.
The deal comes as Goldman Sachs looks to exit its agreement with Apple after mounting financial losses and a broader rethinking of its consumer finance business.
Apple Card backed by Chase?
The report says that negotiations between Apple and JPMorgan Chase began early last year, but have “accelerated in recent months.” Apple has reportedly told JPMorgan that it is its “preferred choice to replace Goldman Sachs as its card partner.”
The report cautions, however, that there are a “number of challenges associated” with the Apple Card and no deal has been signed yet. Apple’s current deal with Goldman Sachs technically runs until 2030, but Goldman CEO David Solomon has said the deal could end much sooner than that.
The report doesn’t provide any additional details about the potential partnership between Apple and JPMorgan Chase.
For example, there are two facets to Apple’s deal with Goldman Sachs: the Apple Card itself and Apple Card Savings Account. The latter is a high-yield savings account available exclusively Apple Card users. JPMorgan Chase doesn’t currently offer an HYSA, so it’s unclear if it would be interested in taking over that component of the deal.
Despite its larger retreat from the consumer market, Goldman Sachs still offers its Marcus high-yield savings account. Perhaps Apple Card itself shifts to Chase, but Apple Card Savings Account sticks with Goldman.
There’s also the possibility that Apple Card will undergo major changes as part of its switch to Chase. There are questions about whether the current terms of Apple Card are financially viable.
For instance, Apple Card charges no fees other than interest, gives you up to 3% cash back, and offers 0% financing on purchases from Apple. The WSJ previously reported that Apple could have to change “key components” of the Apple Card to lure a new partner.
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