JPMorgan Chase Set to Take Over Apple Card from Goldman Sachs

NEW YORK, NY — JPMorgan Chase has reached an agreement to take over the operation of the Apple Card from Goldman Sachs, according to sources familiar with the deal. This announcement is expected soon, following more than a year of negotiations between the two financial giants.

The shift comes amid Goldman Sachs’s recent decision to withdraw from several consumer banking products after experiencing significant losses in that sector. Reports indicate that Goldman is offloading approximately $20 billion in outstanding Apple Card balances at a considerable discount, which is unusual for co-branded credit card deals.

Goldman Sachs has sought an exit from its Apple partnership largely due to higher-than-average delinquency rates and a high concentration of subprime borrowers among its customers. As a result, finding a buyer for the Apple Card’s balances proved challenging.

JPMorgan’s takeover of the Apple Card signifies a major expansion into the consumer credit market. Sources have revealed that as part of the transition, JPMorgan will also launch new Apple-branded savings accounts. Existing Apple savings account holders with Goldman will have the option to stay with Goldman or switch to JPMorgan.

Apple Card was introduced in 2019 as a collaboration between Apple, Goldman Sachs, and Mastercard. It offers benefits such as cash back on purchases and deep integration with the Apple Wallet app. Although Apple Card is currently only available in the United States, the company has plans for international expansion, particularly in Canada, where it is seeking trademark protections.

This development marks a significant change in the partnership dynamics of the Apple Card. A formal announcement regarding the transition to JPMorgan is anticipated shortly.