Chase could be a potential partner for Apple Card

AppleInsiderAppleInsider
Posted:
in General Discussion edited December 2023

Chase could be the best partner for Apple Card, a report proposes, with previous history between the bank and the iPhone maker seemingly making it the best possible successor to Goldman Sachs for Apple's credit-based service.

Apple Card
Apple Card



Goldman Sachs is on its way out as a partner for Apple Card, leaving Apple needing to find another potential financial institution to help operate the service. The end result of that search could end up being Chase.

In Sunday's "Power On" newsletter for Bloomberg, Mark Gurman writes that Chase already has a "significant relationship" with Apple, including holding some of Apple's $60 billion cash warchest. Chase was also one of the earliest partners of Apple Pay, and worked with Appel on its Ultimate Rewards program with discounts on Apple products.



Chase is also one of Apple's biggest credit card partners for transactions happening at Apple Stores, online, and via the App Store.

There's also the benefit of Chase already using the Mastercard network for its cards. Partnering with Chase would mean there's no need for Apple to switch platforms to Visa or American Express.

The change may also benefit Apple Cash, as the Green Dot Bank has apparently encountered struggles and reliability issues. By contrast, Chase's strong debit card network could work with Apple Cash, and provide benefits such as access to ATMs.

The exception would be the Apple Savings high-yield account with an annual rate of 4.15%, which is far higher than any savings accounts offered by Chase. While a potential problem for a Chase tie-up, it's still possible for the account deposits to be split between other banks, leaving Chase to handle everything else Apple Card-related.


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Comments

  • Reply 1 of 19
    MplsPMplsP Posts: 3,931member
    Seems like a good idea, IMO. Hopefully they could have a real web sited and actual integration with financial apps like Quicken, Banktivity, etc. That’s the biggest drawback of the Applecard and why I don’t use it more. 
    williamlondon
  • Reply 2 of 19
    respencerrespencer Posts: 16member
    Actually, Chase does "do" Visa. Amazon Prime Chase credit cards are based at Chase.
    watto_cobradarkvader
  • Reply 3 of 19
    ApplePoorApplePoor Posts: 286member
    I think the bad debt experience at GS is only a result of their poor selection process to allow new customers. Their lust after the exhorbiant interest rates on credit card debt blinded them to the fact that those high interest rates are because of defaults. Since they accepted marginally qualified customers, then there should be no surprise at their losses. Greed does often have dire consequences. 
    watto_cobramuthuk_vanalingamiOS_Guy80williamlondondarkvader
  • Reply 4 of 19
    rob53rob53 Posts: 3,253member
    It’s amazing how tight banks have become. They make tons of money yet offer next to nothing in savings interest. As a kid savings account interest was 5% not 0.01%. 
    watto_cobradarkvader
  • Reply 5 of 19
    jonrojonro Posts: 64member
    I would like to see Barclay Banks as Apple's credit card partner. Apple used to have a relationship with Barclay and there were hard feelings when Apple switched to GS for their branded card. 
    watto_cobra
  • Reply 6 of 19
    InspiredCodeInspiredCode Posts: 403member
    Chase was early to be a mobile device friendly company. One of the first to have a decent app and accept mobile deposits. They have seemed to have lost their drive to innovate lately. I’d question Chase’s willingness to have Apple banking services compete directly with its own- facilitated by Chase or not. Apple will certainly want to expand in to other areas. Debit/checking at least. Chase is diversified enough that maybe they just see the end of traditional banking coming and are willing to give up control over some areas.

    Apple likes to have multiple providers in case they have trouble with one and to have metrics to base performance on. That must be weighing heavily on them with the GS partnership. I wonder if we will see them switch to multiple banks to partner with.
    edited December 2023 watto_cobra
  • Reply 7 of 19
    InspiredCodeInspiredCode Posts: 403member

    ApplePoor said:
    I think the bad debt experience at GS is only a result of their poor selection process to allow new customers. Their lust after the exhorbiant interest rates on credit card debt blinded them to the fact that those high interest rates are because of defaults. Since they accepted marginally qualified customers, then there should be no surprise at their losses. Greed does often have dire consequences. 
    This was an Apple requirement because they didn’t want to leave anyone out. They wanted anybody that wanted an Apple Card to be able to get one. If it were about greed then they would have jacked up rates and fees.
    watto_cobraBart Ywilliamlondon
  • Reply 8 of 19
    InspiredCodeInspiredCode Posts: 403member
    respencer said:
    Actually, Chase does "do" Visa. Amazon Prime Chase credit cards are based at Chase.
    Yes. As far as I know Chase just does Visa, but they might do both networks.
    watto_cobraBart Ydarkvader
  • Reply 9 of 19
    InspiredCodeInspiredCode Posts: 403member
    MplsP said:
    Seems like a good idea, IMO. Hopefully they could have a real web sited and actual integration with financial apps like Quicken, Banktivity, etc. That’s the biggest drawback of the Applecard and why I don’t use it more. 
    These apps are mainly for those with complicated financial situations. I don’t think the AppleCard is really going after the freelancer or sole-proprietor market yet. The AC features are all aimed at normal money management needs. I don’t think these apps typically integrate with non-bank credit cards either. If Apple gets to the point of being a full online bank it might make more sense to offer an API.
    edited December 2023 watto_cobraBart Y
  • Reply 10 of 19
    HonkersHonkers Posts: 156member
    My Chase Savings account is 4.1%, though that is UK rather than USA.  *hint*hint* Apple.
    Bart Y
  • Reply 11 of 19
    XedXed Posts: 2,573member
    rob53 said:
    It’s amazing how tight banks have become. They make tons of money yet offer next to nothing in savings interest. As a kid savings account interest was 5% not 0.01%. 
    There are plenty of high-yield savings accounts available. Many are in the 5.xx% range.
    watto_cobraBart Ygrandact73
  • Reply 12 of 19
    22july201322july2013 Posts: 3,573member
    In Canada, Chase has a substantial presence with its big partnership with Scotiabank.
    Bart Y
  • Reply 13 of 19
    davendaven Posts: 696member
    Hopefully Apple can find a better option than Chase.
    williamlondon
  • Reply 14 of 19
    22july201322july2013 Posts: 3,573member
    daven said:
    Hopefully Apple can find a better option than Chase.
    Who would be better? It's easy to criticize.
    Bart Ymike1grandact73
  • Reply 15 of 19
    squuiidsquuiid Posts: 58member
    Ethically I’d have an issue with it being Chase. Hope they don’t go down this route.
    https://www.theguardian.com/money/2022/dec/12/us-banks-named-as-being-among-least-ethical-uk-operators
    edited December 2023
  • Reply 16 of 19
    MplsPMplsP Posts: 3,931member
    InspiredCode said:
    MplsP said:
    Seems like a good idea, IMO. Hopefully they could have a real web sited and actual integration with financial apps like Quicken, Banktivity, etc. That’s the biggest drawback of the Applecard and why I don’t use it more. 
    These apps are mainly for those with complicated financial situations. I don’t think the AppleCard is really going after the freelancer or sole-proprietor market yet. The AC features are all aimed at normal money management needs. I don’t think these apps typically integrate with non-bank credit cards either. If Apple gets to the point of being a full online bank it might make more sense to offer an API.
    Strongly disagree - I've been using a financial app as long as I can remember. It greatly simplifies my personal finances and makes it much easier to see and keep track of where my money is being spent. I know several people who also use quicken and none of them are freelancers or sole-proprietors.
    williamlondon
  • Reply 17 of 19
    mikethemartianmikethemartian Posts: 1,328member
    rob53 said:
    It’s amazing how tight banks have become. They make tons of money yet offer next to nothing in savings interest. As a kid savings account interest was 5% not 0.01%. 
    That wasn’t banks, that was savings and loan institutions.
    williamlondon
  • Reply 18 of 19
    mikethemartianmikethemartian Posts: 1,328member
    InspiredCode said:
    MplsP said:
    Seems like a good idea, IMO. Hopefully they could have a real web sited and actual integration with financial apps like Quicken, Banktivity, etc. That’s the biggest drawback of the Applecard and why I don’t use it more. 
    These apps are mainly for those with complicated financial situations. I don’t think the AppleCard is really going after the freelancer or sole-proprietor market yet. The AC features are all aimed at normal money management needs. I don’t think these apps typically integrate with non-bank credit cards either. If Apple gets to the point of being a full online bank it might make more sense to offer an API.
    You are supposed to reconcile your bank accounts once a month whether you are a consumer or business.
    MplsPwilliamlondon
  • Reply 19 of 19
    MplsPMplsP Posts: 3,931member
    mikethemartian said:
    rob53 said:
    It’s amazing how tight banks have become. They make tons of money yet offer next to nothing in savings interest. As a kid savings account interest was 5% not 0.01%. 
    That wasn’t banks, that was savings and loan institutions.
    I remember back in the 80's getting 5-6% on a savings account. That was also when the interest rate for loans was 15-20%. 
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