According to the Wall Street Journal, JPMorgan Chase has reached a deal to take over the Apple Card credit card program from Goldman Sachs.
While the Apple Card is a premium co-branded product, it reportedly hasn’t been very profitable for Goldman Sachs, the original card issuer. This could be due to Apple’s firm stance on certain card terms or its on-phone software making it easy to keep up with payments. Goldman Sachs hasn’t commented directly about the situation, but it’s been reported for over a year that it wants to end its partnership with Apple.
The report claims that JPMorgan Chase, the country’s largest bank, will acquire the roughly $20 billion worth of outstanding card balances at a discount of nearly $1 billion, so eager is Goldman Sachs to be rid of it. The WSJ reports that the deal is all but completed and should be announced soon, barring any last-minute hiccups.
It is not yet clear what this will mean for Apple Card holders. There may be new physical cards issued (current cards say Goldman Sachs on the back) or a change in the terms, conditions, or even interest rate of the card. The report doesn’t offer any information about such planned changes for consumers, if there are any. However, customers who stick with their Apple Card should have a seamless transfer to the new bank.
The Journal notes that Chase is also taking over the savings account, but will launch a separate version. Customers with existing Apple savings accounts through Goldman Sachs will need to decide whether to stay or open a new account with JPMorgan, according to the report.
