Apple has reportedly secured a new collaborator to take over from Goldman Sachs for its Apple Card, as outlined in a recent report from the Wall Street Journal. This shift follows over two years of speculation about Goldman Sachs’ intention to exit the partnership, mainly due to substantial financial setbacks in the consumer credit card market.
Per sources referenced by the Wall Street Journal, JPMorgan Chase is poised to step in as the provider for Apple’s iPhone-integrated credit card. Goldman Sachs has been looking to withdraw from the Apple Card arrangement, which has led to multi-billion dollar deficits for the bank. The agreement will see JPMorgan Chase taking on existing credit balances at a major discount, with projections indicating that Goldman Sachs could transfer about $20 billion in outstanding card balances for over a $1 billion markdown. This is significant as most co-branded credit card balances usually sell at a premium, making such discounts uncommon and suggestive of a difficult scenario.
Alongside managing the Apple Card, JPMorgan Chase is anticipated to support Apple-branded savings accounts. Current customers holding savings accounts with Goldman Sachs will have the choice to either stay with Goldman or move to a new account with JPMorgan.
The expected announcement of this arrangement is anticipated soon, following prior reports of the separation between Apple and Goldman Sachs regarding the Apple Card, which debuted in 2019. The Apple Card, exclusively available in the United States, provides various perks, including 3% cash back on purchases from Apple and select merchants when using Apple Pay, 2% cash back on other purchases made with Apple Pay, and seamless integration with the Apple Wallet app on iPhone. This card succeeded a previous co-branded card with Barclays, which lacked the same level of integration or the unique titanium card design.
