Barring any “last minute hiccups,” JP Morgan should soon officially announce that it has reached a deal to take over operation of the Apple Card, reports The Wall Street Journal. Barring any “last minute hiccups,” the deal should be announced shortly after over a year of negotiations.
Rumors began circulating in 2023 that current Apple Card issuer Goldman Sachs was looking for someone to take the credit card off of its hands, as it was looking to scale back on consumer banking services, thanks to steep losses.
According to the WSJ reports, Goldman Sachs will be unloading its roughly $20 billion of outstanding Apple Card balances at a discount of more than $1 billion, which is a rare move for co-branded account deals like this. Goldman Sachs had to make such a deal, as the Apple Card has higher-than-average delinquency rates and high exposure to subprime borrowers, making it tougher than usual to find a buyer.
In late 2024, we reported that JP Morgan Chase was interested in taking on the Apple Card, and by summer 2025, the financial monolith appeared to be the front runner.
IN addition to taking on the Apple Card, JP Morgan will also reportedly launch a new Apple savings account, although current users with Goldman Sachs-managed Apple savings accounts will not be automatically transitioned to the new program, and will need to decide whether they’ll stay with Goldman Sachs, or make the move to Chase.
