It seems that the partnership between Apple and the financial institution Goldman Sachs has its days numbered, and now a new contract for the rights to the technology giant’s financial services is in the air, so there are many who are behind winning it. However, there is one name that stands out above the rest due to several reasons and it is the American bank Chase.
It was last week when, according to information, Apple had proposed to Goldam Sachs to terminate the contract that united them until 2029 for the management of the financial services of the apple company as the Apple Card, Apple Pay Later or the savings account.
Apparently Both parties wanted to part ways. after encountering some bumps in the road throughout this agreement that began in 2019, according to Bloomberg’s Mark Gurman. And because Apple wants the best for its services and You don’t want bad services to be linked to your products, The company founded by Steve Jobs offered a deal to Goldman Sachs to terminate the agreement early.
For this reason, Apple has to go out in search of a new partner to help it with its financial services side, and although in 2019 when it had nothing, many banks saw this partnership as a risk, today The Apple Card has millions of users and more than $10 billion in deposits in related savings accounts.
Reasons why Chase is the best positioned
Although at the time, when Apple had nothing, many banks rejected this idea because it carried many risks, the situation has changed today The Apple Card has millions of users and more than $10 billion in deposits in related savings accounts. This has made all entities now want to take the company off the block to dance, but according to Gurman, the JP Morgan Chase Bank, better known as Chase bank, is the best positioned.
First of all, it is because Chase and Apple already have a relationship and work together to carry out different services offered by the apple company. For example, Chase is responsible for store around $60 billion in cash available to Applejust like from the beginning has been one of the main partners of Apple Pay.
They both have a program called “Ultimate Rewards” (The best rewards) offered to bank customers of this receive discounts on brand products. Besides that Chase is one of the largest transactional credit card partners at Apple retail outlets, the online store and the App Store.
As if that were not enough, this partnership makes even more sense if we think that Chase offers credit cards that use the MasterCard network, the same system as the Apple Card and therefore the company would not have to switch to another platform such as Visa or American Express.
The only thing that would be left in the air would be Apple savings accounts, since Chase does not offer such high interest ratesso if this agreement were to occur it would be quite likely that It was another banking entity that was in charge of covering this section.
What happened between Apple and Goldman Sachs?
Although about a year ago, both parties signed an extension until 2029, as Gurman explains There were engineering problems when developing the service. At the same time there was various complaints about gender discrimination when granting credits and limits with the Apple Card.
In the end this card became a pit of losses for the bank, which in recent months had been trying to get rid of the agreement in every way, while Apple did not want there to be controversies around its services, so ending this earlier agreement was a win-win situation for both of us. The truth is that the separation would not be immediate, and as the association would end very soon within a year, But first they will have to establish who pays what and to whom.