JPMorgan Chase (NYSE:JPM) is in advanced talks to take over the Apple Card from Goldman Sachs, marking a pivotal shift in Apple's consumer finance strategy. Since its 2019 launch, the Apple Card has grown to serve over 12 million users, with outstanding balances exceeding $17 billion. This potential deal comes as Goldman Sachs exits the credit card business due to sustained losses and regulatory scrutiny.
Apple is considering JPMorgan as its next banking partner, which would deepen their existing relationship. JPMorgan already processes Apple Pay transactions for millions of Chase cardholders and frequently promotes Apple products through customer perks. This partnership could allow JPMorgan to expand its digital payments footprint and strengthen its role in the fintech sector.
The deal is not yet finalized, with ongoing negotiations over pricing and potential program adjustments. JPMorgan is reportedly seeking a discount on the portfolio due to concerns about credit quality and the unique billing setup of the Apple Card, which has posed challenges for Goldman Sachs. Apple appears open to modifying the model, but the final outcome remains uncertain.
Goldman Sachs' decision to withdraw from the Apple Card partnership is part of a broader retreat from retail banking, driven by mounting losses and regulatory pressures. In contrast, JPMorgan sees an opportunity to leverage Apple's vast ecosystem and enhance its presence in digital finance. If successful, this transition could redefine how traditional banks collaborate with tech giants, highlighting the enduring importance of established financial infrastructure in the evolving fintech landscape.
Apple's financial landscape is also under scrutiny as it prepares to release its quarterly earnings on July 31, 2025. Wall Street analysts estimate an earnings per share (EPS) of $1.42, with projected revenue of approximately $88.96 billion. Currently, Apple's stock price is $212.20, reflecting a decrease of 0.87% with a change of $1.86. The company's market capitalization stands at approximately $3.17 trillion, with a trading volume of 23.6 million shares on the NASDAQ:AAPL exchange.
