Apple and JPMorgan Chase have agreed in a deal where they will take over Apple Card operations. The deal has finally reached an agreement after negotiations that lasted over a year. The first rumors began 2 years ago that Goldman Sachs was to end their collaboration with Apple as it scaled back products in consumer banking due to big losses.
JPMorgan Chase has shown interest in taking over as the issuer for the Apple Card. Current users who have accounts under Apple savings with Goldman Sachs will not transition automatically, and they will be given a choice on whether they want to open a new account with the new issuer or remain with Goldman Sachs.
Reportedly, $20 billion Apple Card outstanding balances will be unloaded by Goldman Sachs with a discount of over a billion dollars, which is an occasional move for accounts that are co-branded. It was difficult for Goldman Sachs to search for a buyer due to high exposure to borrowers that are subprime and the delinquency rates that were higher than average.
