JPMorgan Chase and Apple are reportedly close to reaching a deal in which the bank would become the tech giant’s credit card partner.
The companies have been negotiating since early 2024, and those talks have accelerated, the Wall Street Journal (WSJ) reported Tuesday (July 29), citing unnamed sources.
The report added that a deal has not been signed, and the negotiations could end without an agreement.
Reached by PYMNTS, JPMorgan Chase declined to comment on the report.
Apple did not immediately reply to PYMNTS’ request for comment.
CNBC also reported Tuesday that the companies are nearing a deal on the Apple Card portfolio, adding that JPMorgan Chase is seeking concessions on how the card is serviced before agreeing to take over that portfolio.
Apple entered the credit card game by launching the Apple Card in March 2019 in partnership with Goldman Sachs and Mastercard.
Apple CEO Tim Cook said at the time that “while we all need them, there are things about the credit card experience that could be so much better.”
It was reported in November 2023 that Apple decided to end its credit card partnership with Goldman Sachs and proposed an exit from their contract.
The program was initially extended through 2029 but Goldman Sachs informed Apple that it intended to offload the partnership after suffering significant losses in its attempt to build a full-service consumer operation.
It was reported in December 2023 that JPMorgan Chase could be the natural successor to take over Apple’s card program.
The bank already had a “significant” relationship with Apple that included being one of the earliest Apple Pay partners, storing some of the tech giant’s cash on hand, and being one of the largest credit card partners for transactions at Apple retail outlets, both online and in stores.
In October, the Consumer Financial Protection Bureau (CFPB) said it would fine Apple and Goldman Sachs more than $89 million for alleged customer service violations tied to the Apple Card.
The CFPB alleged that the two companies were tied to “customer service breakdowns and misrepresentations that impacted hundreds of thousands of Apple Card users.”
Source link
