Gurman: Chase Bank is 'Ideal Partner' to Take Over Apple Card Deal

With Apple and Goldman Sachs set to put an end to their Apple Card agreement over the next 12 to 15 months, Chase Bank could be the ideal partner to step in and take over Goldman Sachs' role, according to Bloomberg's Mark Gurman.

apple card 1
In his weekly PowerOn newsletter, Gurman on Sunday said that JPMorgan Chase & Co already works with Apple on several financial initiatives, which is why Chase "makes more sense" than other ‌Apple Card‌ partners that have been proposed, such as American Express.

Chase was an early Apple Pay partner, is one of the banks that holds Apple's $60 billion in cash, and works with Apple on an Ultimate Rewards program that provides discounts on Apple products to Chase customers. Right now, the ‌Apple Card‌ is on the Mastercard platform, which is also used by Chase, so Apple would not need to swap over to Visa or American Express.

When Apple was first seeking a partner for the ‌Apple Card‌, Chase, American Express, and Citigroup all declined to work with Apple because it was not clear at the time if the endeavor would work out, but now that ‌Apple Card‌ has millions of users, banks that weren't previously interested may want to reconsider.

If Apple does end up working with Chase, Gurman points out that the Apple Savings account might have to go or that Apple might have to find a different partner for it. Chase does not offer high-yield savings accounts that are on par with the 4.15 percent return rate that the Apple Savings account provides under Goldman Sachs.

There have been rumors for months that Goldman Sachs wanted to get out of consumer banking and thus out of its partnership with Apple. The Wall Street Journal last week confirmed that Apple will let Goldman Sachs out of its deal, with Apple planning to stop working with Goldman Sachs in the next 12 to 15 months.

The ‌Wall Street Journal‌ suggested that Apple could work with Synchrony Financial on the ‌Apple Card‌, and prior rumors have said that Goldman Sachs approached American Express about taking over the partnership. It is not yet clear if Apple is already in talks with another bank, nor what the company's next steps will be. ‌Apple Card‌ service will continue on as normal as Apple works to find a new partner, and Apple has promised to continue to provide "the best tools and services" for ‌Apple Card‌ customers.

Top Rated Comments

macduke Avatar
11 weeks ago
I really like the Chase card I have for Amazon Prime. Get 5% cash back which pays for the cost of Prime many times over throughout the year. I would be happy with this change.
Score: 16 Votes (Like | Disagree)
kildraik Avatar
11 weeks ago

Remember most credit card companies, and especially Chase, call people who pay off their balance every month "deadbeats."
Chase can call me whatever they want. They’re very good to me. I’m carrying something over $50k in available credit with them across multiple products and they’ve never made a dime of interest from me. So a deadbeat be I.
Score: 13 Votes (Like | Disagree)
AgentOSX Avatar
11 weeks ago

Dunno about this one. Chase can easily take the card, but they’re also known for maximising their profits with credit cards. I can’t see the Apple Card features remaining intact as we know them if Chase takes over.
Remember most credit card companies, and especially Chase, call people who pay off their balance every month "deadbeats."
Score: 12 Votes (Like | Disagree)
Drew1980 Avatar
11 weeks ago
I agree with AMEX but Apple may have “kicked themselves” in that AMEX is super picky on whom they offer credit to. They do NOT lend to subprime borrowers and since Apple pushed GS to lend to as many people possible, including subprime, they’re now suffering the consequences as their loss rate is too high. AMEX does indeed carry the world class prestige that Apple loves, but too many losses for AMEX comfort.
Score: 10 Votes (Like | Disagree)
AgentOSX Avatar
11 weeks ago

Remember the craze for the Chase Sapphire card a few years back? I wonder if there would a be a huge frenzy over an Apple Sapphire Reserve Card powered by Chase™. Imagine airport lounges designed by Apple (minimalistic yet crowded), an annual Apple Store credit, guaranteed access to a Chase Private Bank Genius (arrogant and dismissive about your finances), dedicated ATMs that use FaceID…I bet it would break the Internet!
;-)
Airport lounge designed by Apple? You mean one with no walk ins allowed, reservations only?
Score: 9 Votes (Like | Disagree)
KaliYoni Avatar
11 weeks ago
Remember the craze for the Chase Sapphire card a few years back? I wonder if there would a be a huge frenzy over an Apple Sapphire Reserve Card powered by Chase™. Imagine airport lounges designed by Apple (minimalistic yet crowded), an annual Apple Store credit, guaranteed access to a Chase Private Bank Genius (arrogant and dismissive about your finances), dedicated ATMs that use FaceID…I bet it would break the Internet!
;-)
Score: 8 Votes (Like | Disagree)

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