Goldman Sachs is seeking to divest its partnership with the Apple Card, a venture that has reportedly incurred losses exceeding $1 billion. The total losses from Goldman Sachs' consumer products have reached around $6 billion, although not all losses are attributed to credit issues.
Recent discussions suggest that JPMorgan Chase is the leading candidate to assume the Apple Card partnership, according to a report from July. Other potential contenders include American Express, Capital One, and Synchrony, though their likelihood of taking over appears low. A major hurdle for any new partner is Apple Card's high subprime customer rate, which stands at 34%, significantly above the average rates of Chase at 15% and Capital One at 31%.
Apple Card also faces a delinquency rate of 4%, surpassing the credit card industry's average of 3.05%. This situation complicates negotiations, as any potential deal would likely require a significant discount to attract a new lender. Meanwhile, Apple Card balances have amassed over $20 billion, highlighting the scale of the undertaking involved in transitioning the partnership.