The Apple Card, which Apple introduced back in March 2019, has had a bit of a tumultuous existence. Though it launched with a lot of fanfare and introduced several consumer-friendly perks, Apple’s banking partner, Goldman Sachs, eventually soured on the deal. According to reports, the Apple Card’s perks, while great for consumers, proved to be a money pit for Goldman Sachs. Apple, meanwhile, had concerns that Goldman Sachs’ customer service issues were tainting the seamless user experience Apple is famous for. In November 2023, a little more than four years the card was unveiled, Apple and Goldman Sachs announced that their partnership was poised to end in 2025.
For a while, it was unclear if the Apple Card had a future. After all, its existence hinged on Apple securing a deal with another issuer. In the interim, there were several reports claiming that Apple was in active negotiations with both American Express and Visa. Now comes word via The Wall Street Journal that the Apple Card may live to see another day thanks to a potential partnership with JPMorgan Chase.
JPMorgan Chase has some concerns
The report claims that a deal is close, though a few issues remain. As it stands now, if JPMorgan Chase were to step in for Goldman Sachs, it would have to take on about “$20 billion in balances currently at Goldman Sachs.” More than 30% of Apple Card holders have a relatively low credit score. Consequently, with a user base more statistically likely to miss a payment, JPMorgan Chase would want to avoid the problems Goldman Sachs encountered. Recall, one of the reasons why the Apple Card was so appealing to consumers in the first place was due to the absence of late fees.
Indeed, if you go to the Apple Card website, this is a huge selling point that’s hard to miss. Apple’s website notes that the Apple Card boasts no annual fees, no late fees, and no foreign transaction fees. If JPMorgan takes on Goldman Sachs’ balance, it’s only reasonable to assume that the company will want this risk baked into the final deal price.