Key Takeaways
- J.P. Morgan Chase is in talks to replace Goldman Sachs as the issuer of Apple’s credit card, The Wall Street Journal reported.
- The sides are in discussions over details including the price the bank would pay to take over the existing balances, with a deal not guaranteed, the Journal reported.
- A number of other lenders have also been reported as potential Goldman successors.
JPMorgan Chase (JPM) could take over as the backer of Apple’s (AAPL) credit-card program after the tech giant and Goldman Sachs (GS) moved to part ways last year, according to The Wall Street Journal.
Goldman and Apple have reportedly had discussions with a number of other banks—including Synchrony Financial (SYF), Capital One (COF) and American Express (AXP)—about taking over as the iPhone maker’s banking partner.
A deal with J.P. Morgan isn’t guaranteed, the Journal reported, with details including what JPMorgan would pay still being discussed. J.P. Morgan declined to comment on the report. Apple didn’t immediately respond to Investopedia’s request for comment.
Apple Appears Open To Making Changes
The bank reportedly wants to pay “less than the full face value” of the estimated $17 billion of balances across Apple’s millions of credit cards, and wants to make other changes to the program that Goldman previously took issue with, like billing dates, which Apple has signaled a willingness to compromise on.
The deal would build on existing partnerships between Apple and JPMorgan Chase, the country’s largest bank, including discounts on Apple products for Chase customers and payments to Apple whenever a Chase customer uses one of its cards with Apple Pay, the Journal reported.