After The Wall Street Journal reported that Apple Card’s partnership with Goldman Sachs could be coming to an end, people started wondering if the company’s credit card, which brings convenience by offering a customizable experience within the Wallet app, could also be discontinued in the lack of a new bank.
Now, Bloomberg suggests that Chase could be Cupertino’s new partner when Apple’s partnership with Goldman Sachs ends next year. In his Power On newsletter, Mark Gurman explains why Chase is Apple’s safest bet.
For example, it already stores some of Apple’s $60 billion in cash in hand, was one of the “earliest and most successful” Apple Pay partners, teams up with Apple on its Ultimate Rewards program, and serves as one of the biggest credit card partners for transactions at Apple stores.
Another point Gurman raises is that Chase already works with the MasterCard network, making a possible transition more seamless than if Apple Card users would switch to Visa or American Express platforms.
The journalist mentions that the Apple Cash debit card could also move to this new bank, although it’s unclear if the savings account could also come, as Chase doesn’t offer up to a 4.15% annual rate.
Could Chase help Apple Card expand internationally?
One thing Gurman doesn’t talk about, but I think it lights a new hope, is the possibility of the Apple Card expanding internationally with Chase.
Although Chase operates in 60 different countries, it doesn’t mean it has a presence for consumer business. Fortunately, in 2021, the bank launched an app-based current account and deposit account in the UK, becoming its first retail banking operation outside the United States.
That said, the Apple Card could at least expand to the United Kingdom in the coming years. In addition, since Apple has been focusing on financial features, I do believe the company might want to expand this business elsewhere, as it will continue offering a tightened experience across its products.
BGR will keep following the next chapters of Apple Card – and the future of this business.