JPMorgan reaches deal to take over Apple credit card: report

[BENGALURU] JPMorgan Chase has reached a deal to take over Apple’s credit-card programme from Goldman Sachs, The Wall Street Journal reported on Wednesday (Jan 7), citing sources familiar with the matter.

The biggest US bank will become the new issuer of Apple Card, one of the largest co-branded credit-card programmes in the country with about US$20 billion in balances, the report said.

The potential deal would cement JPMorgan’s position in the credit cards segment and mark another win for CEO Jamie Dimon, under whose leadership the bank has become a dominant force in retail and investment banking.

JPMorgan will issue Apple Cards for both new and existing customers, with the transition from Goldman Sachs expected to take time, according to the report.

The bank is also planning to launch a new Apple-branded savings account, while existing Apple savings customers at Goldman Sachs will be able to choose whether to remain or move, the report said.

Goldman Sachs is expected to offload the roughly US$20 billion of outstanding card balances at a more than US$1 billion discount, the report said.

JPMorgan and Goldman declined to comment, while Apple did not immediately respond to a Reuters request for comment.

Talks between JPMorgan and Apple began in 2024, as Goldman Sachs sought to unwind a partnership that had once been a cornerstone of its consumer banking strategy.

Launched in 2019 in partnership with Goldman Sachs, the Apple credit card offered perks such as no fees and cashback, but the bank’s struggles in consumer banking prompted a rethink of the alliance.

Barclays and Synchrony Financial had also discussed partnering with Apple for the credit card, Reuters reported last year. REUTERS