Apple Card Will Move From Goldman Sachs to JPMorgan Chase - MacRumors
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Apple Card Will Move From Goldman Sachs to JPMorgan Chase

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JPMorgan Chase 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.

Apple Card iPhone 16 Pro Feature
Reports began circulating over two years ago that current Apple Card issuer Goldman Sachs was looking to end its partnership with Apple as part of an effort to scale back on consumer banking products amid steep losses.

According to The Wall Street Journal, Goldman Sachs is unloading its roughly $20 billion of outstanding Apple Card balances at a discount of more than $1 billion, a rare move for co-branded account deals like this. But higher-than-average delinquency rates and high exposure to subprime borrowers made it more difficult for Goldman Sachs to find a buyer.

JPMorgan Chase's interest in taking over as Apple Card issuer was reported over a year ago, and by this past summer Chase appeared to be the front-runner.

Alongside its new Apple Card partnership, JPMorgan Chase will reportedly launch a new Apple savings account, but existing users with Apple savings accounts at Goldman Sachs will not be automatically transitioned and will need to decide whether they want to stay at Goldman Sachs or open new accounts with Chase.

Update 2:27 pm: Apple has officially announced the change to Chase, with the transition expected to occur in approximately 24 months. Apple Card will remain on the Mastercard network following the shift.

"We're incredibly proud of how Apple Card has transformed the credit card experience for customers by delivering innovative tools that empower users to make healthier financial decisions," said Jennifer Bailey, Apple's vice president of Apple Pay and Apple Wallet. "Chase shares our commitment to innovation and delivering products and services that enhance consumers' lives. We look forward to working together to continue to provide a best-in-class experience and exceptional customer service with Apple Card."

Apple has also posted an FAQ about the transition.

Tags: Apple Card Guide, Chase

Top Rated Comments

WarmWinterHat Avatar
WarmWinterHat
13 weeks ago
(checks my Chase savings account)

Prepare for a 0.01% interest rate!
Score: 25 Votes (Like | Disagree)
cateye Avatar
cateye
13 weeks ago

Apple Card seems to be kind of a hot potato.
This has been common knowledge among card flippers and industry bloggers for a while. There was something curiously out of whack between the Apple Card's marketing as a "premium" card (which it really isn't, given its meager menu of benefits) and the reality that it was increasingly adopted by people who probably shouldn't be carrying open credit lines from anyone. The delinquency rates I've seen reported are bonkers. Maybe Apple was putting pressure on Goldman Sachs to drive adoption or maybe Goldman Sachs thought selling dollars for 50¢ = Profit, or maybe a little of both.

Chase runs a tight ship and has no stomach for targeting subprime borrowers the way Capital One does with a handful of their card products, so they're going to squeeze that audience then likely dump them in waves. This is SOP in the industry when taking on another bank's bad debt.

I also wouldn't necessarily judge the interest rate on a Chase-supplied "Apple Savings account" based on their regular savings products. Any bank can offer whatever interest rate they want. There's nothing preventing Chase from spinning up a competitive HYSA. The question is, do they need to? HYSA's are a way for banks to increase cash holdings as a hedge against debt. Chase has zero need for that. But they may still want to do it as an olive branch toward Apple if it's something Apple really wants. (shrug) we'll see.
Score: 20 Votes (Like | Disagree)
PBG4 Dude Avatar
PBG4 Dude
13 weeks ago

So it is a best guess that we will receive a completely new card because of the switch from Mastercard to Visa.
Wonder if they’ll switch from titanium to aluminium cards.
Score: 19 Votes (Like | Disagree)
S
supergt
13 weeks ago
Chase is supremely stingy on their savings account APY. Despite the negative comments about GS, at least they offer a very competitive savings product.
Score: 19 Votes (Like | Disagree)
C
Cheesehead Dave
13 weeks ago
I'd be happy if they converted it to Visa so I can finally use it at Costco.
Score: 18 Votes (Like | Disagree)
jz0309 Avatar
jz0309
13 weeks ago
Better than Amex (way limited acceptance) for sure ...
Score: 18 Votes (Like | Disagree)
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