Report: JPMorgan Chase Negotiating to Become Apple Credit Card Issuer

JPMorgan Chase is reportedly in talks with Apple to become the new issuer of the Apple credit card.

The discussions have advanced in recent weeks after getting started earlier this year, the Wall Street Journal (WSJ) reported Tuesday (Sept. 17), citing unnamed sources.

Negotiations are ongoing and there is no guarantee an agreement will be reached, according to the report.

Neither JPMorgan Chase nor Apple immediately replied to PYMNTS’ request for comment.

The current issuer of the credit card, Goldman Sachs, and Apple agreed to end their partnership last year, but the companies have not yet reached an agreement with a new issuer to take over the program, per the report.

Apple and JPMorgan Chase already have ties that include offering deals on Apple products to Chase customers and the bank paying the tech company whenever one of its card customers uses Apple Pay, the report said.

However, JPMorgan Chase is negotiating to pay less than full face value for the outstanding balances in the Apple credit card program and to change some parts of the program, including Apple’s requirement that cardholders receive their statement at the beginning of the month, according to the report.

Apple has subprime exposure and terms that could be costly for any issuer, the report said.

It was reported in November that Apple proposed an exit from its credit card contract with Goldman Sachs within the following 12 to 15 months. The program was initially extended through 2029.

Goldman Sachs entered the credit card space in 2019 but began pulling back four years later after suffering significant losses in its attempt to build a full-service consumer operation. By early 2023, the bank told Apple it intended to offload the partnership.

It was reported in December that Chase could be a natural successor to take over the Apple credit card program as the two companies already had a significant relationship.

For example, Chase was one of the earliest Apple Pay partners, stores some of the tech giant’s approximately $60 billion of cash on hand and is one of the largest credit card partners for transactions at Apple retail outlets.

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