JPMorgan Seeks Partners to Share Co-Branded Credit Card Risk

JPMorgan Chase has been exploring ways to ease tensions with its credit-card partners, including airlines and retailers. The bank is looking for partners to underwrite rejected applications for some of its co-branded credit cards, which have long been a point of contention between the two parties.

The co-brand cards are a type of credit card that allows consumers to earn rewards points or cash back at specific merchants. However, banks take on much of the risk associated with whether those cardholders will default on their payments.

This move could open the door for private credit to get a new piece of consumer debt. Private credit firms specialize in lending to consumers who are deemed too high-risk by traditional lenders.