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JPMorgan Chase reportedly has been in talks to take over Apple’s credit card program since last year
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JPMorgan Chase and Apple are reportedly close to a deal for JPMorgan to become the backer of Apple’s credit card program.
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The Wall Street Journal and CNBC reported Tuesday that Apple’s talks with other competitors have slowed while the JPMorgan negotiations have accelerated.
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The negotiations have continued for months as Apple looked for a replacement after Goldman Sachs decided to offload the credit card program.
Apple (AAPL) and JPMorgan Chase (JPM) are in advanced talks for the banking giant to take over as the backer of Apple’s credit card program, according to a report from The Wall Street Journal on Tuesday.
The Journal, citing people familiar with the matter, reported that talks between JPMorgan and the iPhone maker have “accelerated in recent months.” The companies have reportedly been in negotiations for JPMorgan to take over the program since last year, as its previous partner, Goldman Sachs (GS), looked to offload the program.
CNBC on Tuesday reported that the sides were close to a deal and that Apple’s negotiations with other finance firms contending for the card portfolio, including American Express (AXP), have slowed or stopped entirely. Separate talks have also been ongoing, with Visa (V) reportedly offering $100 million to replace Mastercard (MA) as the payment processor behind the cards, according to the Journal.
Apple cardholders have total balances of nearly $20 billion, and previous hurdles to the negotiations included the amount JPMorgan wants to pay for the business and the number of cardholders who carry subprime credit scores, the Journal reported. Apple executives may face questions from analysts about the report when the tech giant reports second-quarter results after the closing bell on Thursday.
JPMorgan declined to comment on the report, and Apple did not immediately respond to a request for comment. Apple and JPMorgan shares were each down slightly in recent trading.
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