JPMorgan Chase is in talks with Apple about taking over the tech giant’s credit card program from Goldman Sachs, the Wall Street Journal reported Tuesday.
Discussions began earlier this year and have advanced in recent weeks, but a deal could still be months away, the report said, citing people familiar with the matter.
Key details, including pricing, are still to be negotiated, according to the report.
Goldman Sachs declined to comment, while JPMorgan and Apple did not immediately respond to Reuters requests for comment.
Goldman and Apple reportedly pulled the plug on their credit card partnership last year.
The Wall Street giant is facing a costly exit from a partnership seen by other lenders as too risky and unprofitable, sources told Reuters in December last year.
After its foray into consumer banking failed, Goldman has refocused on its traditional pillars – investment banking and trading. The consumer business that CEO David Solomon championed has lost billions of dollars.
The card, launched in 2019, was one of the hallmarks of Solomon’s consumer banking strategy. But the Wall Street titan, which typically deals with wealthy clients, had little experience with less wealthy clients, analysts say.
The two companies gave the cards to customers with lower credit scores in an effort to boost revenue, a source told Reuters last year.
The card offered benefits such as “no fees” and cashback. But Goldman had to set aside larger provisions for bad loans, leading to higher paper losses for its consumer business.
Goldman is also exiting a credit card partnership with automaker General Motors. Earlier this month, Solomon dismissed the idea that the bank’s early exit from GM was messy, saying the bank had anticipated problems.
Investors have backed Goldman’s effort to refocus on its Wall Street operations, pushing its stock up nearly 27% so far this year.
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