JPMorgan Chase & Co. is in early discussions with Apple Inc. to take over the management of the Apple Card, which Goldman Sachs Group Inc. has been looking to exit.
According to sources familiar with the matter, JPMorgan is one of several potential candidates exploring the acquisition of the credit card portfolio, currently valued at around $17 billion.
Goldman Sachs launched its partnership with Apple in 2019 as part of its consumer banking initiative, but the bank has since pivoted away from retail banking after facing significant losses. The talks with JPMorgan, reported by The Wall Street Journal, are still in the preliminary stages, and no deal has been finalized, with price and key operational terms yet to be determined.
Apple has reportedly also engaged with other potential suitors, including Synchrony Financial and Capital One Financial Corp., as part of its effort to find a new partner for the card. Goldman Sachs’ retail banking retreat has included offloading other portfolios, such as a recent $2 billion sale of loans to Barclays.
One key feature under review in the JPMorgan discussions is Apple’s practice of billing card customers at the start of each month, which has led to increased customer service demand. JPMorgan is reportedly seeking changes to this system as part of the negotiations.
Representatives for Apple, Goldman, and JPMorgan have not commented on the ongoing discussions.
CNBC, Bloomberg, and Financial Times contributed to this report.
