Chase Bank is poised as a potential replacement for Goldman Sachs as Apple’s financial partner for the Apple Card, according to Bloomberg’s Mark Gurman. As Goldman Sachs aims to disengage from its partnership with Apple, Gurman suggests that Chase, given its substantial existing relationship with the tech giant, could be a logical choice to step in and fill the void.
It was first reported earlier in the year that Apple Card issuer Goldman Sachs was trying to exit its partnership with Apple as part of the bank’s cut back on its consumer business as it reported in January that throughout 2022, the bank lost over $1.2 billion from its consumer lending services, with Apple Card accounting for the majority of the loss.
As behind the scenes discussions are allegedly happening between Apple and Goldman Sachs, Gurman has shared why Chase would be a sensible bank to takeover the role of issuer, which would lead to the Apple Card making its first international debut.
Chase Bank already stores some of Apple’s roughly $60 billion in cash on hand. The bank was one of the earliest and most successful Apple Pay partners and serves as one of the biggest credit card partners for transactions at Apple retail outlets, online store and the App Store.
Unlike American Express, who was rumored to replace Goldman Sachs in the Apple Card deal, Chase already uses the Mastercard network for its cards, which would mean there’s no need for Apple to switch platforms to Visa or AMEX.
Furthermore, as Chase Bank has started an international rollout, including offering consumer banking in the UK, a partnership between Chase and Apple could finally see Apple Card expanded beyond the United States for the first time since its launch in 2019.
As noted by Gurman, the current Apple x Goldman Sachs partnership likely won’t end within the next 12 months due to contractural formalities.