JPMorgan Chase Nearing Deal to Take Over Apple’s Credit Card From Goldman Sachs
Hey FinTech Fanatic,
JPMorgan Chase is in talks to take over Apple’s credit card program from Goldman Sachs, potentially becoming the new issuer. However, the bank is seeking concessions from Apple before finalizing the deal. Discussions, which began earlier this year, have progressed in recent weeks but could still take months to reach an agreement, according to sources familiar with the matter.
In its search for a new partner, Apple has also explored options as Synchrony Financial and Capital One, to transfer its credit card program. Goldman Sachs, Apple’s current partner, had previously held similar discussions with American Express.
A partnership between Apple and JPMorgan would strengthen their relationship, as JPMorgan already offers Apple-related deals to its Chase customers. Apple, with over 12 million credit card users, is in need of a new issuer after Goldman decided to exit consumer finance.
JPMorgan, led by CEO Jamie Dimon, is negotiating to acquire the program but aims to pay less than the $17 billion in outstanding balances, given the potential subprime exposure. Some credit card portfolios with high delinquency rates often sell at a discount. Allison Beer, JPMorgan’s head of the credit-card division, is leading the evaluation of the program’s value.
Additionally, JPMorgan is looking to remove Apple’s requirement that all cardholders receive statements at the start of the month, a policy that caused issues for Goldman and attracted regulatory scrutiny.
With negotiations still ongoing, stay tuned for more updates as this story unfolds.
Cheers,
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