JPMorgan Chase is set to replace Goldman Sachs as the backer for Apple’s iPhone-integrated credit card, according to a report by the Wall Street Journal. This transition follows more than two years of Goldman Sachs seeking an exit from the partnership due to significant financial losses in the consumer credit card sector.
The deal involves JPMorgan taking on approximately $20 billion in outstanding card balances at a discount exceeding $1 billion. This type of discount is uncommon, as most co-brand partnerships typically involve selling balances at a premium. In addition to credit card services, JPMorgan is planning to introduce new savings accounts branded under Apple.
Consumers currently holding Apple savings accounts with Goldman Sachs will have the option to remain with their existing accounts or switch to the new offerings from JPMorgan. An official announcement regarding this partnership is anticipated soon.