JPMorgan could take over duties as Apple Card issuer if it gets a good enough deal
As Goldman Sachs prepares to offload its responsibilities to Apple, a new suitor has appeared. JPMorgan seems interested in taking the mantle -- but with conditions.
Apple Card
It's been known for some time now that Goldman Sachs has wanted to end its relationship with Apple, with whispers of unrest first appearing in June 2023. However, it wasn't much of a surprise, as a report in January 2022 showed the investment bank lost $1.2 billion, chiefly because of the Apple Card.
As a result, Apple and Goldman Sachs have begun looking for a replacement partner who would take over duties as card issuer. The newest suitor to be added to the lineup is JPMorgan.
According to The Wall Street Journal, JPMorgan is very interested in the deal, but not without some concessions. Allegedly, JPMorgan wants to pay less than the full face value of Apple Card cardholders' $17 billion in outstanding balances.
The reason for the undercut is largely because Apple has subprime exposure -- Apple Card apparently has a high percentate o users with lower-than-average credit scores and are considered default risks. This could make the deal costly for anyone to take on.
According to the report, JPMorgan also wants to do away with Apple's requirement that cardholders receive their statement at the beginning of the month. Allegedly, this practice caused Goldman Sachs to have customer service issues and exposed the bank to increased regulatory scrutiny.
Yet, there are plenty of reasons JPMorgan could want to take on the deal. JPMorgan is the world's largest bank by market capitalization and thus would likely have the resources to take on the Apple Card.
It already has ties to Apple, too. JPMorgan provides Chase customers with deals on Apple products. It also pays the company whenever its cardholders use Apple Pay.
For its part, Goldman Sachs is gearing up to exit the consumer finance sector. It is anticipated that Goldman Sachs will lose millions on the eventual sales.
JPMorgan isn't the only bank interested in the Apple Card. Goldman Sachs has talked to both Synchrony and American Express.
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Comments
Personally, I'm fortunate enough to be able to pay off the card every month. The 2-3% cash back rate doesn't make sense if you're paying 19% in interest.
We use Chase for our daily banking needs and are quite pleased. No cost checking and (though rarely used) it is very nice having a private banker to assist you when needed. I do not care for their deprecating safe deposit boxes, but it seems most banks (at least in my area) have already done away with them. Time to look into a good home safe.
If the date had been set for the 5th each month would it be just as good? How about setting it for the 17th? Still OK?
My AMEX cards are due the same date every month. Why would it matter if your payment date was a week earlier or later than mine as long as it's the same every month?
New Apple card should be Apple card palladium (with space grey (default) and rose gold/gold color) and monthly fee is $250-300 with 4% cash back. But order to activate 4% back require monthly spending at least $3000.
Under $3000, should get 2.5%. Other perks add and dedicate 24/7 human cs. Apple product purchase also included as 3% back over $3000 purchase kick in 5% cash back.
New premium card requires verify income level at $100K-150K.