JPMorgan Chase & Co. is in talks with Apple Inc. to replace Goldman Sachs Group Inc. as the tech giant’s credit card partner, a person familiar with the matter said Tuesday.
Talks began earlier this year and have made progress in recent weeks, but any potential deal could still be months away, the sources said, asking not to be identified because the talks are private.
The Wall Street Journal reported the news earlier.
Goldman Sachs declined to comment, while Apple did not immediately respond to a Reuters request for comment.
Goldman Sachs and Apple reportedly ended their partnership, which included credit cards and savings accounts, last year.
Sources told Reuters in December that Goldman faced a costly exit from the partnership, which other banks viewed as too risky and unprofitable.
Goldman is refocusing on its traditional pillars of investment banking and trading after a failed foray into consumer banking championed by Chief Executive Officer David Solomon that has lost billions of dollars.
The card, launched in 2019, is one of the hallmarks of Goldman’s retail strategy. Last year, sources told Reuters that Apple and Goldman Sachs were offering the card to customers with lower credit scores in an effort to boost revenue.
The card offers “free” credit and cash back benefits. But Goldman had to set aside more reserves for bad debts, leading to higher paper losses in its consumer business.
Goldman will also exit its credit card partnership with automaker General Motors. Earlier this month, Solomon pushed back against suggestions that the bank’s early exit from GM would cause trouble, saying Goldman had anticipated problems.
Investors have backed Goldman’s attempt to refocus on its Wall Street business, pushing its shares up nearly 27 percent so far this year.
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