Breaking: Apple has a new Card Issuer for its credit card business

"JPMorgan Chase could take over the Credit Card program from Goldman, and become the new Apple credit-card issuer, but is seeking concessions from the tech giant...

Discussions started earlier this year, and have advanced in recent weeks, but a deal could still be months away, according to people familiar with the matter.

Apple has been in talks with potential partners, including Synchrony Financial and Capital One, to transfer its credit card program, sources say.

Goldman Sachs, its current partner, previously discussed a similar deal with American Express.

A partnership between Apple and JPMorgan would strengthen ties between the tech giant and the largest U.S. bank, which already offers deals on Apple products to Chase customers.

Apple needs a new issuer for its credit card, which has over 12 million users, after Goldman decided to exit consumer finance.

JPMorgan, led by CEO Jamie Dimon, is negotiating to buy Apple's credit card program but seeks to pay less than the face value of the $17 billion in outstanding balances.

Some credit card portfolios with high delinquency rates sell at a discount, and Apple's program carries subprime exposure.

Allison Beer, head of JPMorgan's credit-card division, is leading efforts to assess the program's value.

JPMorgan also wants to eliminate Apple's requirement that all cardholders receive statements at the start of the month, a billing practice that caused issues for Goldman and led to regulatory scrutiny.

Goldman, meanwhile, is facing a $400 million pretax loss on the sale of its General Motors credit card and potentially more when selling the Apple card program.

Additionally, the Consumer Financial Protection Bureau has been investigating Goldman's handling of Apple credit card accounts, focusing on billing practices.

To be continued..."

Author

AiUTOMATING PEOPLE, ABN ASIA was founded by people with deep roots in academia, with work experience in the US, Holland, Hungary, Japan, South Korea, Singapore, and Vietnam. ABN Asia is where academia and technology meet opportunity. With our cutting-edge solutions and competent software development services, we're helping businesses level up and take on the global scene. Our commitment: Faster. Better. More reliable. In most cases: Cheaper as well.

Feel free to reach out to us whenever you require IT services, digital consulting, off-the-shelf software solutions, or if you'd like to send us requests for proposals (RFPs). You can contact us at [email protected]. We're ready to assist you with all your technology needs.

© ABN ASIA