Apple Card kicked off as a partnership between Apple and Goldman Sachs, but that seems to be coming to an end soon. There were rumors that Goldman Sachs wanted out of the relationship, and a recent report from Mark Gurman corroborated this information, with a replacement likely lined up.
Now, Gurman has revealed the potential replacement. In his latest Power On newsletter, Gurman talked about how Chase Bank is the likely partner for Apple Card moving forward, owing to the company’s existing relationship with the bank.
Chase-Apple partnership could keep Apple Card on the MasterCard network
Gurman discussed why it would make sense for Apple to go with Chase this time around, noting that it was one of the banks that passed on the Apple Card the first time around.
Chase already has a relationship with Apple, which includes holding some of Apple’s massive cash reserves, being an early Apple Pay partner, and a partnership with Apple for its Ultimate Rewards program.
Another key factor is the fact that Chase issues credit cards on the MasterCard network which the Apple Card currently uses, noted Gurman.
However, Chase wouldn’t be the perfect partner for Apple’s savings account due to its low-interest rate in comparison to Apple’s 4.15%.
Gurman wrote, “Unlike Goldman and some other banks, Chase only offers peanuts when it comes to interest for savings accounts. So, assuming Chase won’t get into high-yield accounts to secure a deal with Apple, there will need to be another solution for that product.”
Gurman noted that Apple could split up that load between several accepting banks.
Regardless, Apple faces a lot of problems with the Apple Card moving forward, but the company is likely to find a way to keep it going, and Chase Bank seems well-positioned to share the load.
We’ll find out soon if Apple and Chase settle on a deal, but your Apple Card is likely to remain functional.