JPMorgan Chase has entered preliminary discussions with Apple to potentially take over the management of the tech giant’s credit card program, which is currently handled by Goldman Sachs.
According to sources familiar with the situation, the talks are in the early stages, and no final agreement has been reached yet.
This development follows a series of moves by Apple and Goldman Sachs to unwind their partnership, which launched in 2019 and now holds about $17 billion in balances.
The Goldman partnership, initially seen as a ground breaking deal for Goldman’s retail banking division, has become a challenge for the investment bank.
Goldman has been scaling back its retail banking ambitions after suffering significant losses.
Part of the ongoing discussions between JPMorgan and Apple includes JPMorgan’s desire to shift Apple away from its current billing practices, which involve charging all cardholders at the beginning of each month, leading to customer service bottlenecks.
JPMorgan CEO Jamie Dimon has been vocal about the growing competition posed by tech companies like Apple, which now offers a range of financial services.
“Apple moves money, holds money, lends money. They’re becoming a bank,” Dimon remarked earlier this year, underscoring the competitive landscape.
Credit card partnerships typically involve a company like Apple branding the card, while the bank, such as JPMorgan, handles the lending and infrastructure.
As JPMorgan explores this new partnership, it could further establish its dominance in the US banking sector, where it holds over $2 trillion in deposits.
Should this deal materialise, it would signal a new chapter for Apple’s financial services offerings and could reshape its relationship with traditional banking institutions.
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