JPMorgan Chase is in talks with Apple about taking over the tech giant’s credit card program from Goldman Sachs, the The Wall Street Journal reported Tuesday.
Talks began earlier this year and have made progress in recent weeks, but it could still be months before a deal is reached, the report said, citing people familiar with the matter.
Key details, including price, are still to be negotiated, the report said.
Goldman Sachs declined to comment, while JPMorgan and Apple did not immediately respond to Reuters’ requests for comment.
Goldman and Apple reportedly ended their credit card partnership last year.
The Wall Street giant faces a costly exit from the partnership that other lenders consider too risky and unprofitable, sources told Reuters in December last year.
After its failed foray into consumer banking, Goldman has returned to its traditional pillars of investment banking and trading. The consumer business championed by its chief executive, David Solomon, has lost billions of dollars.
The card, launched in 2019, was one of the hallmarks of Solomon’s consumer banking strategy. But the Wall Street giant, which typically deals with wealthy clients, had little experience with less affluent customers, analysts have said.
The two companies gave cards to customers with lower credit scores in an attempt to boost revenue, a source told Reuters last year.
The card offered perks like “no fees” and cash back, but Goldman had to set aside higher provisions for bad loans, leading to higher paper losses for its consumer business.
Goldman is also exiting a credit card partnership with automaker General Motors. Earlier this month, Solomon dismissed the idea that the bank’s early exit from GM would be complicated, saying the bank had anticipated the problems.
Investors have supported Goldman’s attempt to refocus on its Wall Street operations, sending its shares up nearly 27% so far this year.
