Apple in talks with JP Morgan Chase to replace Goldman Sachs

by | Sep 23, 2024 | E-commerce News

JP Morgan Chase is in talks with Apple to replace Goldman Sachs as its credit card partner, according to The Wall Street Journal, which cited sources familiar with the matter.

Here's a quick backstory: 

  • Aug 2019 – Apple and Goldman Sachs collaboratively launched the Apple Card, which grew to over 12M cardholders in the U.S., with 60% using it as their primary credit card.
  • Aug 2022 – Apple and Goldman Sachs announced a high yield savings account, which officially launched to the public in April 2023 offering a 4.15% APY (which was high at the time). 
  • March 2023 – The Apple / Goldman Sachs partnership expanded to include BNPL via Apple Pay Later (which was discontinued in June 2024).
  • All the while, Goldman Sachs was reportedly winding down its consumer banking division, yet simultaneously moving forward with Apple on credit services and a savings account.
  • July 2023 – I reported that Goldman Sachs was in discussions with American Express to take over its deals with Apple, but it wasn't confirmed at the time whether Goldman Sachs was actually going to back out of the deal (which would require Apple's approval). 
  • Dec 2023 – It became more apparent that Goldman Sachs was planning on ending its deal with Apple, and that Apple has to find a new banking partner. 

The WSJ reports that discussions between JP Morgan Chase and Apple commenced at the beginning of the year, and that talks have progressed in recent weeks, but a finalized agreement could still be months away.

American Banker reports that 40% of Apple Card owners had an annual income of $100k or more in 2023, and 34% of Apple Card users had an income between $50k and $99k, with over half being millennials — which means Apple's credit card business would be a welcome addition to the portfolio of any of the top 10 issuers.

Aaron McPherson, principal at AFM Consulting, predicts that JP Morgan Chase, if it were to secure the partnership, might increase underwriting guidelines to give the Apple Card offering a more premium position (ie: the new AMEX for Millenials).

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