Marvin Samuel Tolentino Pineda
Apple (NASDAQ:AAPL) is reportedly telling JPMorgan Chase (NYSE:JPM) that it’s the preferred choice to replace Goldman Sachs (NYSE:GS) as its credit card partner, according to a media report on Tuesday.
Talks between tech giant Apple (NASDAQ:AAPL) and the largest U.S. bank have accelerated in recent months after starting negotiations in early 2024, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.
There’s no guarantee that an agreement will be reached, as there are a number of challenges associated with the Apple program that could derail the process, the report said.
A deal would give JPMorgan (NYSE:JPM) a customer base loyal to Apple, who may seek to finance the purchase of more electronics and services. The bank would also have an opportunity to cross-sell its other financial products and services to the well-heeled Apple customers.
Goldman Sachs (NYSE:GS) has drastically scaled back its consumer finance offerings after sinking billions of dollars into the business, and early this year said it may end the Apple (AAPL) partnership before the pact expires at the end of 2029. In November 2023, Apple proposed ending the partnership early.
JPMorgan Chase (JPM) stock edged down 0.1%, Goldman Sachs (GS) rose 0.3%, and Apple (AAPL) dipped 0.9% in Tuesday morning trading.