JPMorgan in Talks with Apple on Goldman Credit Card Partnership 

JPMorgan Chase is in talks with Apple to replace Goldman Sachs as its credit card partner, shifting the tech company’s financial services as Goldman exits consumer banking, ending the Apple Card partnership with the financial giant.  

Discussions started a few months ago, according to the Wall Street Journal in recent weeks, there have been more frequent conversations. Any final agreement on the Apple Card partnership may be a few months away, according to a source familiar with the situation. 

The Apple Goldman Sachs credit card partnership ended last year when Apple and Goldman Sachs got out of the credit card and savings account deal. Goldman supposedly found the deal too costly and very risky, pushing the banking giant to pivot back to its core businesses, investment banking and trading, after the consumer banking, spearheaded by the chief executive David Solomon, lost billions of dollars. 

Goldman’s Costly Exit from Consumer Banking 

The Apple credit card was introduced in 2019 and was the flag bearer of Goldman’s foray into retail banking. It came without fees and had cashback, among other benefits, but it also extended credit to customers with poorer credit scores in pursuit of more revenue. This has translated into higher provisions set aside for bad loans and fast-rising losses within Goldman’s consumer banking division. 

The dissolution of the Apple Goldman Sachs partnership marks a broader retreat from retail banking by Goldman. The bank is also laying the final pieces of its credit card deal with General Motors to rest a part of its retreat from consumer lending. Its chief executive, David Solomon, brushed off concerns over the exit, arguing that his bank foresaw these challenges. 

JPMorgan’s Potential Entry and Apple’s Evolving Strategy 

JPMorgan’s potential entry into the Goldman Sachs Apple partnership could signal a new direction for the tech company’s financial services. This shift may offer more stability for Apple’s growing suite of financial products. If JPMorgan takes over the credit card business, it could bring new terms and benefits to the Apple Card partnership cardholders, potentially enhancing the customer experience with additional perks or more competitive offers. 

Apple ending its partnership with Goldman Sachs could be a strategic move to align with a partner better suited to support its long-term vision. JPMorgan, with its robust consumer banking infrastructure, might provide Apple with the flexibility to expand its financial services beyond just credit cards, possibly paving the way for more comprehensive offerings in the future. This partnership could also strengthen Apple’s foothold in fintech, further integrating financial services into its ecosystem. 

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