The Wall Street Journal (WSJ) reported on the 17th that JP Morgan Chase, the largest bank in the U.S., is in talks to issue an Apple credit card. The source said that JP Morgan began discussions with Apple to issue a credit card early this year, and that the deal has recently progressed. However, the source added that it could still take several months to conclude the contract, and that the deal may not be concluded because important details such as the price are still being negotiated.
The discussions follow Apple’s decision last year to end its partnership with Goldman Sachs, the issuer of the Apple Card, which includes a credit card and savings account. Apple launched the Apple Credit Card in 2019 in partnership with Goldman Sachs, and launched a savings account this year. However, in November last year, the two companies agreed to end the partnership within the next 12 to 15 months, and Apple has been looking for a new card issuer.
Apple has also reportedly been in contact with credit card issuers Synchrony Financial and Capital One. The WSJ assessed that if the deal between JPMorgan and Apple goes through, it will further solidify the union between the largest bank in the U.S. and the largest tech company in the world.
JPMorgan currently offers discounts to Chase card customers when they buy Apple products, and Apple earns revenue by receiving a certain amount of commission from JPMorgan every time a Chase card customer uses Apple Pay to make a purchase. It is reported that there are 12 million Apple credit card users in the U.S. Meanwhile, Apple has been partnering with Goldman Sachs on credit card business since 2019, but it is known that it has not been smooth from the start.
Apple irritated Goldman Sachs by advertising that the card was not issued by a bank, and by requiring cardholders to receive bills at the beginning of each month, dissatisfaction among Goldman Sachs customer service staff, whose work is concentrated during this period, grew.