19 Comments

    1. Salty_Permit4437 on

      It means exactly what the paywalled article says – Apple Cards will now be issued by Chase. The savings account will transition from GS to Chase.

    2. Jseepersaud10 on

      I can’t see it, so I’m unsure about all the details. But interested to hear more when they announce everything.

    3. JPMorgan Chase has reached a deal to take over the Apple credit-card program from Goldman Sachs, according to people familiar with the matter.

      The biggest bank in the country will become the new issuer of the tech-giant’s credit card, one of the largest co-branded programs with some $20 billion in balances, in a deal that has been negotiated for more than a year.

      The deal, which is expected to be announced soon baring any more last minute hiccups, will further cement JPMorgan’s status as a behemoth in the credit-card sector and marks the final chapter of Goldman’s failed experiment in consumer lending.

      The details

      The new deal is expected to bring two of the country’s most influential companies closer together at a time when payments are increasingly playing out on people’s phones, watches and other gadgets. The bank gets a loyal base of Apple customers to whom it can pitch more financial products and Apple gets a partner with a sprawling consumer franchise to help it sell and finance more gadgets.

      Goldman Sachs is expected to offload the roughly $20 billion of outstanding card balances at a more than $1 billion discount, according to people familiar with the matter.

      With most co-brands, balances sell at a premium of up to 8%, a figure that can run into the double digits for the strongest programs. Discounts are rare and are reserved for the most challenged cases.

      The discount in this deal reflects a high exposure to subprime borrowers and what has been a higher-than-industry-average delinquency rate, creating the potential for significant losses on the outstanding balances. Concerns about those losses slowed the deal talks and contributed to hesitation from JPMorgan and other banks that looked at pursuing a deal, The Wall Street Journal earlier reported.

      JPMorgan will issue Apple credit cards for both new and existing cardholders, the people said. The transition from Goldman, as is the case with most card deals, will take time.

      JPMorgan is planning to launch a new Apple savings account, according to people familiar with the matter. Consumers with existing Apple savings accounts at Goldman will decide whether they want to stay there or open an account with JPMorgan, the people said.

      The context

      Goldman and Apple launched the card in 2019 to much fanfare. The program marked the bank’s ambitions to become a Main Street lender, diversifying beyond its Wall Street core. By late 2022, with mounting losses and regulatory probes under way, Goldman did an about-face and began a slow and costly exit from consumer lending.

      Goldman has lost more than $7 billion on a pretax basis since the beginning of 2020 on a large chunk of its consumer-lending businesses. It sold specialty lender GreenSky and the General Motors credit-card program at big losses.

      Efforts to move the Apple program to a new issuer have been under way for more than two years. Goldman and Apple engaged with a range of possible suitors, from large credit-card issuers such as American Express, Capital One and Synchrony Financial to fintechs and private-credit shops, people familiar with the matter have said.

    4. SillyTechnology7340 on

      >Wonder what this means to the Apple Card?

      It’ll continue to exist, but with a Chase logo on the back instead of Goldman Sachs?

      Really curious to see what a Chase Apple Savings account looks like.

    5. KleinUnbottler on

      TL;DR:

      JP Morgan Chase is buying the Apple Card business from Goldman. Outstanding balances (~$20B) sold at a 5%-ish discount. Typically, these sell at a premium “up to 8%” for co-branded cards, but since Apple Card has so many subprime users, it has a higher delinquency rate and therefore a discount was warranted.

      The transition will take time and Chase will issue cards for old and new holders.

      Chase is going to launch their own Apple Savings Account, and people with existing Apple Savings accounts at Goldman will get to choose to stay or go.

    6. I’m blacklisted from Chase on deposits and credit. Should be interesting to say the least holding the CC and savings with Goldman.

      Wondering if they’ll just stay as a separate platform vs keeping everything integrated into their normal CC stack.

    7. Flights-and-Nights on

      > Wonder what this means to the Apple Card

      …it’s gonna say Chase on it instead of Goldman Sachs..

    8. Happy about this as I can further consolidate my life into JPMC’s banking ecosystem. 😌

      In all honesty this doesn’t really mean very much to me besides streamlining my accounts with JPMC. I really only use my AC for recurring subscriptions on my iOS devices (3% cash back) and for 0% financing of Apple purchases. I dumped the GS HYSA for VUSXX at JPMS instead because it’s more tax efficient at the end of the day too.

    9. Psychological-Buy46 on

      I’d expect this to be similar to the Amazon cards.

      Cash back and they’ll probably allow you earn 5% cash back for booking travel through the Chase travel portal.

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