Goldman Sachs is slowly coming to the end of its journey with the Apple Card, and that only means that the technology giant has to find a banking partner fast. As it so happens, according to the latest report, JPMorgan Chase could be looking to set up an alliance with Apple to continue the service, but there could be certain conditions involved.
A deal could still be months away, with JPMorgan reportedly wanting to pay less than $17 billion of Apple Card customers’ outstanding balances
A Goldman Sachs executive was previously reported to have expressed grief over forming a business relationship with the Apple Card, as its losses touched $1.2 billion in 2022, thanks to spending around $350 to acquire each user. The news is likely not foreign to JPMorgan Chase, and according to The Wall Street Journal, there are certain conditions involved before the financial institution takes the reins from Goldman Sachs.
For starters, JPMorgan Chase wants to pay less than the $17 billion full face value of Apple Card cardholders in outstanding balances. Even though a deal could be months away from materializing, this is one aspect that the bank wants Apple to comply with. As reported by AppleInsider, Apple Card users have a ‘lower than acceptable’ credit score and are considered default risks.
JPMorgan Chase likely investigated this area and concluded that it wanted concessions. After all, high-risk Apple Card users will be costly for anyone. Additionally, the bank wants to get rid of Apple’s requirement that cardholders receive their statements at the beginning of each month.
This practice reportedly caused Goldman Sachs immense problems with customer services, not to mention exposing it to increased regulatory investigation. Looking at what Goldman Sachs had to endure for several years, it would be in JPMorgan Chase’s best interest to diffuse further talks. However, Apple has several other alternatives to converse with, so we should hear about an update in the coming months so stay tuned.
News Source: The Wall Street Journal
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