Apple Discovers New Partner to Succeed Goldman Sachs for Apple Card
In a significant move, Apple is set to partner with JPMorgan Chase to replace Goldman Sachs as the backer of its Apple Card. This decision comes after over two years of reports detailing Goldman Sachs’ desire to exit the partnership.
New Partnership Developments
According to the Wall Street Journal, this transition will see JPMorgan Chase stepping in to support Apple’s iPhone-integrated credit card. Goldman Sachs has long struggled in the consumer credit card sector, incurring substantial losses associated with its Apple Card initiative.
Financial Implications
Goldman Sachs is believed to be offloading approximately $20 billion in outstanding credit card balances, but at a significant discount exceeding $1 billion. Typically, similar transactions garner a premium, often around 8%, but this situation is considered unusual due to the financial challenges faced by Goldman Sachs.
- Apple Card launched in 2019
- Goldman Sachs has sought to exit the partnership for over two years
- JPMorgan Chase will assume existing credit balances
- Goldman Sachs will sell outstanding balances at a steep discount
Additional Services Offered
Beyond the Apple Card, JPMorgan will also manage Apple-branded savings accounts. Current customers with Goldman Sachs may opt to stay, while new accounts will be launched by JPMorgan.
Background of the Apple Card
The Apple Card, exclusively available in the United States, provides users with various benefits, including:
- 3% cash back on Apple purchases and select merchants via Apple Pay
- 2% cash back on all other purchases using Apple Pay
- Integration with the Apple Wallet app on iPhone
This latest development marks a notable shift in Apple’s financial offerings and its collaboration with major banking institutions. An official announcement regarding the partnership is expected to be made in the near future.
