With Apple and Goldman Sachs set to end their Apple Card agreement in the next 12 to 15 months, Chase Bank could be the ideal partner to step in and take over Goldman Sachs’ role.
In his weekly PowerOn newsletter on Sunday, Gurman said that JPMorgan Chase & Co is already working with Apple on several financial initiatives, which is why Chase “makes more sense” than other Apple Card partners that have been suggested, such as American Express.
Chase was an early Apple Pay partner, is one of the banks holding Apple’s $60 billion in cash, and works with Apple on an Ultimate Rewards programme that offers Chase customers discounts on Apple products. Currently, the Apple Card is on the Mastercard platform, which is also used by Chase, so Apple would not have to switch to Visa or American Express.
When Apple was first looking for a partner for the Apple Card, Chase, American Express and Citigroup all declined to work with Apple because it wasn’t clear if the venture would work, but now that the Apple Card has millions of users, banks that weren’t previously interested may reconsider.
If Apple does end up working with Chase, Gurman points out that the Apple Savings account may have to go, or Apple may have to find another partner for it. Chase does not offer high-yield savings accounts that can match the 4.15 per cent return offered by the Goldman Sachs Apple Savings account.
Rumours have been circulating for months that Goldman Sachs was looking to exit the retail banking business and thus its partnership with Apple. The Wall Street Journal confirmed last week that Apple is letting Goldman Sachs out of the deal, with Apple planning to end its relationship 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 earlier rumours suggested that Goldman Sachs had approached American Express about taking over the partnership. It is not yet clear whether Apple is in talks with another bank, or what the company’s next steps will be. The Apple Card service will continue as normal while Apple works to find a new partner, and Apple has promised to continue to provide “the best tools and services” for Apple Card customers.
