JPMorgan Chase is reportedly in continued discussions with Apple Inc. to take over the tech giant’s flagship credit card program, currently managed by Goldman Sachs. This potential transition marks a significant shift in the financial landscape, especially considering Goldman Sachs’ recent struggles in the consumer banking sector.

JPMorgan and Apple started their talks earlier this year, and they have been ongoing since. The Wall Street Journal first reported on these discussions. While both sides are interested, they haven’t made a deal yet. According to the sources, it might take even more months to finalize the deal. Goldman Sachs has been in charge of the Apple Card since it launched in 2019, but they have faced many challenges that have led Apple to look for a new partner.

Goldman Sachs has been trying to step back from its consumer banking business because it lost a lot of money with the Apple Card. They aimed to attract customers with lower credit scores, but this led to many people not paying their bills on time. Because of these issues, Goldman told Apple they wanted to move away from the partnership, which is why Apple is now talking to JPMorgan.

JPMorgan Chase is the biggest credit card issuer in the United States, so it makes sense for the giant to take over the Apple Card. JPMorgan Chase already has a relationship with Apple through promotions for Chase customers and transactions made using Apple Pay. This existing connection could help make the transition easier if JPMorgan takes over.

However, JPMorgan wants to ensure they get the best deal. They are looking to buy the $17 billion in loans tied to the Apple Card but want to pay less than the face value as they are concerned about high delinquency rates within the portfolio. They are also discussing changes to how the card works, such as possibly getting rid of its unique billing system, which has caused problems for Goldman Sachs.

Even though things look promising, there are still some challenges before a deal can be made. Both companies need to agree on financial terms and make sure that the loans involved are manageable. They also need to think carefully about any changes to the card features so that customers remain happy while also making things easier for JPMorgan.

These talks come from both companies wanting to strengthen their positions in their markets. For JPMorgan, taking over the Apple Card would mean gaining access to millions of loyal Apple customers. For Apple, working with a more stable bank could help improve its reputation and provide better service for its users.

As JPMorgan Chase and Apple continue their discussions, everyone is watching closely to see what happens next. If they reach an agreement, it could change how both companies operate and affect how consumers use credit cards in the U.S. While there is hope for this partnership, it’s still uncertain whether a deal will happen or if other banks might step in as options for Apple’s credit card in the future.