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News

JPMorgan in talks with Apple over Goldman credit card partnership

Wednesday 18 September 2024 11:32 CET | News

JPMorgan Chase, allegedly, has been in talks with Apple about potentially replacing Goldman Sachs as the tech company's credit card partner.

 

According to a source familiar with this situation, these talks began earlier in 2024 and have progressed in recent weeks, but any final agreement could still be months away. The Wall Street Journal first reported the news. 


Apple and Goldman Sachs partnership 

In 2023, Apple and Goldman ended their partnership, which had involved credit cards and savings accounts. Various sources had reported that Goldman faced an expensive exit from the partnership, which was viewed as too risky and unprofitable by other lenders. 

After its consumer banking venture did not meet expectations, Goldman has shifted its focus back to its core areas of investment banking and trading. The consumer division has resulted in significant financial losses for the bank. 

JPMorgan Chase, allegedly, has been in talks with Apple about potentially replacing Goldman Sachs as the tech company's credit card partner.

The Apple Card, launched in 2019, was a key part of Goldman’s retail banking push. The partnership targeted customers with lower credit scores, aiming to increase revenue. However, offering features like "no fees" and cashback incentives forced Goldman to allocate larger reserves for bad loans, resulting in higher losses. 

Goldman is also in the process of ending its credit card partnership with General Motors. Earlier this month, officials from the company dismissed concerns that the bank's exit from its GM partnership was problematic, stating that the bank had anticipated these challenges. 

Investors have supported Goldman's return to its traditional Wall Street operations, which has helped the bank’s stock rise nearly 27% this year. 

Source: Link


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Keywords: partnership, credit card, payments , banking
Categories: Payments & Commerce
Companies: Apple, Goldman Sachs, JPMorgan Chase
Countries: World
This article is part of category

Payments & Commerce

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Apple

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Goldman Sachs

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