JPMorgan Chase nears a deal to take over Apple’s credit-card program

JPMorgan Chase is in advanced talks to take over Apple’s credit card program from Goldman Sachs, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.

Discussions between the country’s biggest bank and Apple accelerated in recent months, with Apple telling JPMorgan it is the tech giant’s preferred choice to replace Goldman Sachs as its card partner. JPMorgan and Apple have been negotiating since early last year, The Wall Street Journal previously reported.

The report doesn’t provide any additional details about the potential partnership between Apple and JPMorgan Chase.

According to 9to5mac.com, 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 (HYSA) 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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JPMorgan is among the top credit card issuers in the United States, and competes closely with rivals such as American Express and Capital One.

Launched in 2019 with Goldman, the Apple card offered perks such as no fees and cashback, but the bank’s struggles in consumer banking prompted a rethink of the partnership. Since then, Goldman has pivoted to its traditional mainstays of investment banking and trading.