Apple Contemplates Switching Apple Card Partnership from Goldman Sachs to Chase

Highlights

• Apple considering ending Goldman Sachs partnership for Apple Card in favour of Chase.
• Chase plays a crucial role in managing Apple’s $60 billion cash reserves and retail transactions.
• Apple evaluates transferring Apple Cash debit card operations to Chase’s network.

Apple is reportedly considering ending its Apple Card relationship with Goldman Sachs in favour of a new partnership with Chase, as per Bloomberg News.

This decision doesn’t come out of the blue though. Apple has reportedly had a robust relationship with Chase as the latter was among the early adopters of Apple Pay.

More importantly, it plays a vital role in managing a portion of Apple’s substantially large $60 billion cash reserves.

Additionally, Chase also has a huge hand in processing transactions at Apple’s retail outlets, both online and in brick-and-mortar stores.

Finally, Chase also offers cards on the Mastercard network, which powers the Apple Card and makes a transition process seamless for the Cupertino Giant.

But why is Apple’s existing partnership with Goldman Sachs, contracted till 2029, likely to come to an early end?

Internally The Wall Street Journal indicated that Goldman has been discussing the possibility of transitioning the program to American Express, even though concerns have been raised about aspects of the program, including its loss rates.

The potential end of Apple Card partnership with Goldman Sachs could have implications for Apple’s services business, a segment increasingly vital for the company amid slowing iPhone sales.

The partnership talks come at a time when Apple is also considering transferring its Apple Cash debit card operations to Chase.

This move could expand the capabilities of the Apple Cash card, potentially offering customers added benefits like ATM access, thanks to Chase’s extensive debit card network.

FAQs

Why is Apple considering a switch from Goldman Sachs to Chase for its Apple Card?

Apple is exploring a switch due to Chase’s significant role in managing Apple’s large cash reserves and handling transactions at Apple’s retail outlets. The potential switch aligns with Chase’s use of the Mastercard network, which powers the Apple Card, offering a more integrated and seamless service experience.

What implications does the potential end of the partnership with Goldman Sachs have for Apple?

Ending the partnership with Goldman Sachs could impact Apple’s services business, a crucial segment in the context of slowing iPhone sales. The switch to Chase could lead to broader service offerings and enhanced financial products for Apple customers.

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