JPMorgan Nears Deal to Acquire Apple's Credit Card Program from Goldman Sachs.

JPMorgan Chase is in advanced talks to take over Apple's credit card program from Goldman Sachs. The deal would further entrench JPMorgan in the credit card business and add to the bank's dominance in retail banking and Wall Street businesses. Goldman Sachs launched the Apple card in 2019 but struggled in consumer banking, leading to a rethink of the partnership.

JPMorgan Chase is in advanced talks to take over Apple's credit card program from Goldman Sachs, according to recent reports. The potential deal would further solidify JPMorgan's presence in the credit card business and enhance its dominance in retail banking and Wall Street operations.

Goldman Sachs launched the Apple Card in 2019, but the partnership has faced significant challenges. The investment bank has been struggling in the consumer banking sector, leading to a reevaluation of the partnership. JPMorgan Chase has long been rumored as a potential replacement, but recent reports suggest that the bank is seeking concessions, particularly around the servicing of the Apple Card portfolio [1].

The Apple Card portfolio, valued at roughly $17 billion, has been marred by higher-than-average delinquencies and defaults, making it less attractive to potential issuers. Additionally, JPMorgan is reportedly seeking to abandon the calendar-based billing feature, which has been a customer favorite but places a significant burden on service personnel [1].

Despite these concerns, an agreement appears to be close, with other potential issuers such as Barclays and Synchrony Financial falling by the wayside. The deal would not only expand JPMorgan's retail banking operations but also position the bank to capitalize on future growth opportunities in the credit card market.

References:
[1] https://www.finextra.com/newsarticle/46370/apple-and-jpmorgan-chase-close-in-on-credit-card-deal