Apple to Replace Goldman Sachs with JPMorgan Chase for Apple Card
Apple is reportedly set to transition from Goldman Sachs to JPMorgan Chase as its partner for the Apple Card, as highlighted in a recent Wall Street Journal article. This news follows over two years of speculation regarding Goldman Sachs’ departure from the Apple Card partnership.
According to sources, JPMorgan Chase will take over the backing of Apple’s credit card integrated into the iPhone. This shift comes after Goldman Sachs has been looking to exit the deal, primarily due to financial losses incurred from the consumer credit card sector.
Other companies like American Express, Synchrony Financial, and Capital One were mentioned as potential candidates to replace Goldman Sachs in previous reports.
The transition to JPMorgan Chase is expected to involve underwriting existing credit balances at a significant discount. Claims suggest that Goldman Sachs aims to sell around $20 billion in card balances for a discount exceeding $1 billion.
This is particularly noteworthy as most co-branded credit card agreements typically involve premiums, sometimes reaching up to 8%, or even more for top-tier programs. Discounts of this nature are quite uncommon and typically reflect challenging financial situations.
Moreover, JPMorgan is also looking to offer Apple-branded savings accounts, although existing customers might still remain with Goldman Sachs. Reports indicate that JPMorgan plans to introduce a new Apple Savings Account, leaving it up to current Apple Savings account holders with Goldman to choose whether to stay there or switch to JPMorgan.
An official announcement regarding this deal is expected soon. Speculation about the split between Apple and Goldman Sachs dates back to November 2023. The Apple Card itself was introduced in 2019.
Currently, the Apple Card is available exclusively in the U.S. and provides benefits like 3% cash back on Apple purchases and selected retailers using Apple Pay, 2% cash back on other Apple Pay transactions, and seamless integration with the Apple Wallet app.
Prior to this, the Apple Card replaced a collaboration with Barclays, which did not feature the titanium card or the iPhone integration that now distinguishes the Apple Card.
