Goldman Sachs has been trying to offload its partnership with Apple for several years. Now, once again, there are new developments regarding the future of this credit card.
Apple Card, available in the U.S. since 2019, has been seeking a new issuer for quite some time as Goldman Sachs is eager to exit the partnership. Currently, talks are underway, and it’s clear that JPMorgan Chase, the leader in the U.S. banking market, is the favored new partner. According to the Wall Street Journal, the G.Business, website reports with reference to negotiations have been accelerating, though no official agreement has been signed yet due to several challenges in the deal.
A Potential Huge Business Deal
If an agreement between Apple and JPMorgan Chase is reached, it will become one of the largest deals in the credit card industry. According to Bloomberg estimates, the Apple Card business is currently valued at $20 billion, with over 12 million active users. JPMorgan Chase, the largest issuer of credit cards in the U.S., is interested in these high-end customers and could potentially offer additional financial products through this channel, though it remains unclear whether Apple will allow this.
Uncertainty Regarding International Expansion
The Apple Card is still only available in the U.S., which has been disappointing as Goldman Sachs initially intended to expand the product through its subsidiary Marcus but has gradually moved away from that idea. Currently, Apple does not have any requirements for international expansion, meaning the card remains available only in the U.S. Possible competitors for partnership include Capital One, Synchrony, and American Express, and the payment network currently in use is Mastercard, though Visa might become a new partner.
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