JPMorgan Chase is close to securing a deal to take over the Apple Card portfolio from Goldman Sachs, according to individuals familiar with the discussions. This move would not only bolster JPMorgan’s already dominant position as the largest U.S. credit card issuer but also mark a strategic pivot for Apple and a significant retreat for Goldman Sachs from consumer banking.
The ongoing negotiations have progressed with JPMorgan emerging as the frontrunner after other contenders, including American Express, Synchrony, and Barclays, reportedly exited talks. While none of the involved parties have publicly commented, the potential agreement is seen as a major win for JPMorgan. The bank, led by CEO Jamie Dimon, already holds the largest share of credit card purchases in the U.S. through its extensive line of branded and co-branded products.
For Goldman Sachs, transferring the Apple Card would mark the end of a challenging venture into consumer finance. Goldman originally entered the credit card space in 2019 with the high-profile launch of the Apple Card, beating out other major players to partner with Apple. However, the card’s rapid growth and associated financial obligations, including the need to front-load reserves for potential losses, proved difficult to manage. Concerns about rising loan losses in the event of a recession also played a role in the decision to divest the card business.
At the end of March, Goldman Sachs reported $20.5 billion in total credit card loans. The bank is also in the process of transferring its General Motors credit card portfolio to Barclays as part of its broader retreat from the consumer sector. CEO David Solomon has faced internal pressure over the performance and direction of the consumer business, and offloading the Apple Card aligns with efforts to refocus the bank’s strategy.
For Apple, shifting the partnership to JPMorgan would offer greater operational stability and potentially improve regulatory compliance, which had become a concern under Goldman. JPMorgan is expected to be more selective in its terms, particularly around servicing arrangements and customer support standards.
The original agreement with Goldman was intended to run through 2029, but the anticipated transition to JPMorgan underscores a significant reshaping of Apple’s financial services ambitions. The final terms of the agreement are still under negotiation, but a resolution appears imminent, signaling a new chapter for the Apple Card.
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