Malcolm Owen
Chase could be the best partner for Apple Card, a report proposes, with previous history between the bank and the iPhone maker seemingly making it the best possible successor to Goldman Sachs for Apple's credit-based service.
Goldman Sachs is on its way out as a partner for Apple Card, leaving Apple needing to find another potential financial institution to help operate the service. The end result of that search could end up being Chase.
In Sunday's "Power On" newsletter for Bloomberg, Mark Gurman writes that Chase already has a "significant relationship" with Apple, including holding some of Apple's $60 billion cash warchest. Chase was also one of the earliest partners of Apple Pay, and worked with Appel on its Ultimate Rewards program with discounts on Apple products.
Chase is also one of Apple's biggest credit card partners for transactions happening at Apple Stores, online, and via the App Store.
There's also the benefit of Chase already using the Mastercard network for its cards. Partnering with Chase would mean there's no need for Apple to switch platforms to Visa or American Express.
The change may also benefit Apple Cash, as the Green Dot Bank has apparently encountered struggles and reliability issues. By contrast, Chase's strong debit card network could work with Apple Cash, and provide benefits such as access to ATMs.
The exception would be the Apple Savings high-yield account with an annual rate of 4.15%, which is far higher than any savings accounts offered by Chase. While a potential problem for a Chase tie-up, it's still possible for the account deposits to be split between other banks, leaving Chase to handle everything else Apple Card-related.
Wesley Hilliard
Christine McKee
Amber Neely
William Gallagher
19 Comments
Seems like a good idea, IMO. Hopefully they could have a real web sited and actual integration with financial apps like Quicken, Banktivity, etc. That’s the biggest drawback of the Applecard and why I don’t use it more.
Actually, Chase does "do" Visa. Amazon Prime Chase credit cards are based at Chase.
I think the bad debt experience at GS is only a result of their poor selection process to allow new customers. Their lust after the exhorbiant interest rates on credit card debt blinded them to the fact that those high interest rates are because of defaults. Since they accepted marginally qualified customers, then there should be no surprise at their losses. Greed does often have dire consequences.
It’s amazing how tight banks have become. They make tons of money yet offer next to nothing in savings interest. As a kid savings account interest was 5% not 0.01%.
I would like to see Barclay Banks as Apple's credit card partner. Apple used to have a relationship with Barclay and there were hard feelings when Apple switched to GS for their branded card.