JPMorgan Chase is reportedly close to finalizing a deal to take over the role of issuer for the Apple credit card, a transition from Goldman Sachs. According to the Wall Street Journal, the two firms are nearing an agreement regarding the Apple Card portfolio. CNBC adds that JPMorgan is requesting certain concessions regarding the servicing of the card.
Apple first launched its credit card with Goldman Sachs in 2019. By 2023, however, Goldman Sachs was looking to offload the portfolio as part of its withdrawal from the consumer market, a venture that has resulted in significant losses for the investment bank.
JPMorgan Chase has been considered a likely successor for some time. However, reports from September 2024 indicated that the bank sought to acquire the approximately $17 billion in loans tied to the Apple Card for less than face value, due to higher-than-average rates of delinquencies and defaults on the portfolio.
Concerns about credit quality have made the portfolio less appealing to potential issuers, especially as the U.S. economy shows signs of a slowdown. Additionally, JPMorgan is looking to eliminate Apple Card’s unique calendar-based billing feature, which leads to all customers receiving statements at the beginning of the month. While this feature is customer-friendly, it creates significant workloads for service staff who handle multiple inquiries simultaneously each month.
Despite these challenges, a deal appears imminent, with other potential candidates like Barclays and Synchrony Financial losing traction. Earlier this year, the Journal also reported that Visa extended an offer of $100 million to Apple to take over the card partnership from Mastercard.