JPMorgan Chase has reached an agreement to take over the Apple Card program from Goldman Sachs, becoming the new issuer of Apple’s co-branded credit card which is one of the largest in the U.S. with roughly $20 billion in outstanding balances.
Goldman is selling the card balances at a discount of more than $1 billion, reflecting challenges with credit performance such as delinquency and subprime exposure.
JPM plans to launch a new Apple branded savings account. Customers with the Goldman backed Apple savings accounts can choose to stay or switch.
Talks began in 2024, and the transition is expected to still take some time. This deal strengthens JPM’s already dominant credit card business while indicating Goldman’s retreat from mass consumer lending.
AAPL originally launched the Apple Card with Goldman Sachs in 2019. Goldman’s broader consumer banking efforts incurred heavy losses, prompting it to scale back and seek a buyer for the Apple Card partnership.
JPMorgan Chase Reaches a Deal to Take Over the Apple Credit Card
byu/3xshortURmom instocks
Posted by 3xshortURmom
6 Comments
A billion-dollar haircut? GSs definitely didn’t handle the move to consumer banking very well did they.
I don’t live in the US, but how many people actually use Apple Credit Card, and how big is JPM in the credit card industry?
How long will they last lol
I wonder is Goldman Sachs will do the same with their Marcus HYSA.
Can’t wait for MasterCard and Visa to finally get cut out over the next few years as everyone makes their own payment processing and credit cards
Maybe this means I can hold my Apple Card in my Chase account (and eventually ditch my iPhone)