Apple Card
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.
