JPMorgan Chase, America's largest bank, is in discussions with Apple about potentially taking over the tech giant's credit card programme from Goldman Sachs.

The talks, first reported on by the Wall Street Journal, reportedly began earlier this year and have gained momentum in recent weeks. They could result in JPMorgan acquiring Apple's credit card business, which currently has over 12 million users and approximately $17 billion in outstanding balances. However, sources cited by the report caution that a deal is not guaranteed and could still be months away, as crucial details including pricing remain to be negotiated.

This development comes after Apple and Goldman Sachs decided to part ways on their partnership last year, which encompassed both credit cards and savings accounts. Goldman has been scaling back its retail banking ambitions following years of losses in the sector.

Jamie Dimon, chief executive officer of JPMorgan, has previously commented on the increasing competition from tech companies in the financial services space. In his letter to shareholders earlier this year, Dimon wrote, "The banking system is not static. There are startup banks, mergers, successful upstarts and fintech banks, and even Apple, which effectively acts as a bank."

A key point of negotiation in the potential deal is the billing structure of the Apple Card. Under the current arrangement with Goldman Sachs, all cardholders receive their statements at the beginning of the month, an unusual practice that has reportedly led to customer service issues. Sources indicate that JPMorgan is keen to alter this structure, and Apple has signalled openness to such changes.

The talks with JPMorgan are part of Apple's broader efforts to find a new home for its credit card programme. The company has also reportedly spoken with other potential suitors, including Synchrony Financial and Capital One.

For JPMorgan, securing the Apple Card deal would further expand its already dominant position in the US credit card market and provide access to Apple's loyal customer base. However, the bank is reportedly seeking to pay less than the full face value of the outstanding balances, citing concerns over the programme's subprime exposure and potentially costly terms.

The outcome of these negotiations could have significant implications for both companies. For Apple, it represents an opportunity to continue its foray into financial services with a new, powerful banking partner. For JPMorgan, it could mean a substantial expansion of its credit card business and a deeper relationship with one of the world's largest technology companies.

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