Apple Card: Speculation on a New Banking Partner

Apple has been on the lookout for a new financial partner to continue its Apple Card service, as current collaborator Goldman Sachs seeks to exit the deal. Now, fresh rumors suggest that another major U.S. bank may be stepping up to take on the role.

Apple Card being used for a retail transaction, a service currently limited to the U.S. market. (Image: Apple)

Goldman Sachs Eyes an Exit

According to a recent report from the Wall Street Journal, JPMorgan Chase has emerged as the leading candidate to replace Goldman Sachs as Apple’s banking partner for the Apple Card. Discussions between Apple and JPMorgan have reportedly been ongoing for several months, and significant progress has been made in recent weeks. However, a finalized agreement is not expected in the immediate future, as critical factors such as pricing are still being negotiated.

Goldman Sachs initially entered the partnership with Apple in hopes of expanding its consumer banking division. However, the Apple Card venture has not yielded the financial results Goldman had anticipated, with the bank facing substantial losses in its consumer business. In contrast, JPMorgan appears confident it could approach the collaboration with Apple more effectively. Additionally, Apple has explored options with other financial institutions, including Capital One and Synchrony, while Goldman Sachs previously attempted to transfer the partnership to American Express but was unsuccessful.

Speculation continues as JPMorgan Chase emerges as the potential new banking partner for Apple’s credit card service, replacing Goldman Sachs.

Limited Global Reach for Apple Card

Despite its success in the U.S. market, the Apple Card has yet to see any significant international expansion. Over the past five years, Apple has not made moves to introduce the card to other countries, even in major English-speaking markets like Canada or the UK.

JPMorgan, which has a well-established global presence, may seem like a suitable partner to help expand Apple Card’s reach beyond the U.S. However, its international operations, such as its “Private Bank” in Germany, primarily cater to specific high-net-worth clients. It remains uncertain whether JPMorgan’s involvement would lead to broader global availability of the Apple Card. Nonetheless, the bank has been working on launching its Chase brand as an online bank in Germany, which could be a potential entry point for Apple’s credit card product. Chase is already the largest credit card issuer in the U.S., and the Apple Card currently boasts around 12 million users.