Chase in Talks to Take Over Apple Card Portfolio
Apple is in talks with JPMorgan Chase about taking over the Apple credit card program from Goldman Sachs. The news was first reported by The Wall Street Journal, citing people with knowledge of the negotiations.
The news comes just as Goldman Sachs and Barclays are nearing a deal for the $2 billion General Motors credit card business portfolio.
The report says that Apple has held talks with several potential partners, including Capital One and Synchrony Financial, who could take over Apple Card. Goldman Sachs also separately spoke with American Express about transferring the partnership last year.
The discussions with Chase are still in the early stages, and there are many unknowns such as whether Chase would continue certain features of the Apple Card, pricing and more. One of the things that Chase wants to change is a key Apple Card feature known as calendar-based billing. It means that all customers get statements at the start of the month rather than staggered throughout the period. The feature is appealing to customers, but it floods service personnel with calls at the same time every month.
The bank is seeking to pay less than face value for the roughly $17 billion in loans on the Apple Card because of elevated losses on the cards. That’s in line with the Goldman Sachs and Barclays deal for the $2 billion General Motors credit card business portfolio, which is also expedited to sell much less than outstanding balances.
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