Apple Card saga continues as negotiations with a new issuer intensify

According to a new Wall Street Journal report, the Apple Card’s future is in a state of flux as negotiations between Apple and JPMorgan Chase intensify, potentially leading to a shift from the current issuer, Goldman Sachs. This move comes as Goldman Sachs continues to struggle with substantial losses in its consumer business.The talks, initiated earlier this year, have picked up steam in recent weeks, with both parties working toward a potential deal. However, finalization is still months away as crucial aspects like price remain unresolved. Apple has been proactively exploring alternatives and has reportedly engaged in talks with other financial institutions like Capital One and Synchrony Financial, while Goldman Sachs even considered passing the baton to American Express last year.JPMorgan Chase, emerging as the front-runner, is reportedly interested in acquiring the Apple Card business but at a discount to the outstanding balances. The bank is eyeing potential risks associated with Apple’s subprime exposure and current program terms. Additionally, JPMorgan has indicated its intention to revamp certain “key components” of the Apple Card, including the much-discussed synchronized billing system that has been a source of logistical challenges for Goldman Sachs. While the specific nature of these changes remains undisclosed, previous reports hint at potential modifications to data sharing practices.