JPMorgan Chase is in advanced talks to take over Apple’s credit-card program, according to people familiar with the matter.
Discussions between the country’s biggest bank and Apple accelerated in recent months, with Apple telling JPMorgan it is the tech giant’s preferred choice to replace Goldman Sachs as its card partner. JPMorgan and Apple have been negotiating since early last year, The Wall Street Journal previously reported.
Still, the deal hasn’t been signed, and there are chances that talks could unravel because of a number of challenges associated with the Apple program.
An agreement would be one of the biggest credit-card deals ever, cementing JPMorgan’s status as the largest credit-card issuer in the U.S. It would serve to bring two of the country’s most influential companies closer together, giving the bank a loyal base of Apple customers to whom it can pitch more financial products, and giving the Apple a sprawling consumer franchise to help it sell and finance more gadgets.
The Apple card has around $20 billion in balances currently at Goldman Sachs.