Apple is in discussions with JPMorgan Chase for the bank to take over the tech giant’s flagship credit card program from Goldman Sachs
The discussions are still early and could falter, and key elements of a deal ,such as price and whether JPMorgan would continue certain features of the Apple Card
The bank is seeking to pay less than face value for the roughly $17 billion in loans on the Apple Card because of elevated losses on the cards
But the move shows the extent to which Apple’s choices were limited when Goldman Sachs decided to pivot from its ill-fated retail banking strategy.
There are only a few card issuers in the U.S. with the scale and appetite to take over the Apple Card program, which had saddled Goldman with losses and regulatory scrutiny.
JPMorgan is the country’s biggest credit card issuer by purchase volume, according to the Nilson Report, an industry newsletter.
Sources close to Goldman argued that higher-than-average delinquencies and defaults on the Apple Card portfolio were mostly because the users were new accounts. Those losses were supposed to ease over time.
JPMorgan is also seeking to do away with a key Apple Card feature known as calendar-based billing
Apple and JPMorgan declined to comment on the negotiations, which were reported earlier by The Wall Street Journal.
For more such interesting stuff, click on the link given below