JPMorgan Chase & Co
What To Know: According to a Wall Street Journal report, JPMorgan is in talks with Apple about taking over its credit-card program. Discussions reportedly began earlier this year and have advanced in recent weeks.
Goldman Sachs Group Inc
The report indicates that Apple has talked with several potential suitors since, including Synchrony Financial, Capital One and American Express. A potential deal with JPMorgan would further tie Apple to the banking giant. JPMorgan already offers deals on Apple products to Chase customers and makes payments to Apple when its credit card customers use Apple Pay.
JPMorgan is reportedly looking for concessions from the tech giant and a deal could still be months away as key details, including the price of the potential transaction, have yet to be negotiated.
The other issue is that when a credit-card partnership changes hands, there generally needs to be an agreement between the existing bank and the bank seeking to take on the program. There's currently about $17 billion in outstanding balances in the Apple Card program. People familiar with the matter said JPMorgan is looking to pay less than face value of those balances.
Allison Beer, CEO of Chase's credit card and connected commerce business, has been working to determine the current value of the Apple program in recent months. Top executives including Jamie Dimon have also been filled in on the continued negotiations, the people said.
"The banking system is not static," Dimon said in his letter to shareholders this year. "There are startup banks, mergers, successful upstarts and fintech banks, and even Apple, which effectively acts as a bank."
At the time of writing, JPMorgan shares were up 0.38% at $208.65, while Apple shares were down 0.32% at $215.64, according to Benzinga Pro.
