Bloomberg’s Mark Gurman has identified JPMorgan Chase & Co as a strong candidate to take over Goldman Sachs’ role in the Apple Card partnership. This development follows the planned termination of the current agreement between Apple and Goldman Sachs, expected to occur within the next 12 to 15 months.
Gurman, in his Power On newsletter, highlighted Chase’s existing collaborations with Apple across various financial initiatives, making it a more logical choice compared to other contenders like American Express.
Chase’s longstanding relationship with Apple includes being an early supporter of Apple Pay, managing a significant portion of Apple’s $60 billion cash reserves, and partnering in the Ultimate Rewards program, which offers Apple product discounts to Chase customers. Notably, both Chase and the current Apple Card operate on the Mastercard platform, allowing for a seamless transition without the need to switch to Visa or American Express.
The search for a new partner comes after initial hesitation from major banks, including Chase, American Express, and Citigroup, to collaborate with Apple on the Apple Card. Their reluctance stemmed from uncertainties about the project’s success. However, the Apple Card’s acquisition of millions of users has potentially shifted perspectives, making the partnership more appealing.
A change in partnership may require adjustments, particularly for the Apple Savings account, which currently boasts a 4.15 percent return rate under Goldman Sachs. Chase, lacking a comparable high-yield savings account offering, could necessitate a different strategy or partner for this feature.
The Wall Street Journal recently reported Apple’s decision to release Goldman Sachs from their agreement, with a transition period of 12 to 15 months. Other potential partners like Synchrony Financial have been mentioned, and there has been speculation about Goldman Sachs approaching American Express for the takeover. The future of these negotiations remains uncertain.
For now, Apple Card services will continue uninterrupted as Apple seeks a new partnership.
The company has assured customers of its commitment to providing top-tier tools and services throughout this transition.