The inevitable seems to have come to pass. Apple has reportedly inked a deal with JPMorgan to take over its Apple Card business, which is now being surrendered by Goldman Sachs at a rare $1 billion discount.
Apple Card will soon be powered by JPMorgan's financial heft
The Wall Street Journal is now reporting that, after a lengthy negotiation period that spanned over 1 year, Apple has inked an agreement with JPMorgan to take over its card business from Goldman Sachs.
Under the terms of the agreement, Goldman Sachs will transfer control of Apple Card accounts with a cumulative outstanding balance of around $20 billion to JPMorgan at a rare $1 billion discount.
For the benefit of those who might not be aware, the Cupertino giant's bespoke card debuted in 2019 in partnership with Mastercard and Goldman Sachs. The card offers an unlimited 2 percent cash back when used with Apple Pay, or an unlimited 3 percent cash back when used at Apple's partner merchants. Moreover, the card entails no foreign transaction fees, no late fees, and no returned payment fees, while offering a 0 percent financing APR on Apple's products.
However, these cashbacks reportedly incurred huge losses for Goldman Sachs, especially when combined with the card's high-than-average delinquency rates and the attendant regulatory requirement to front-load reserves, which then prompted Apple to search for other banking partners.
Of course, JPMorgan will now have to issue new cards to existing cardholders. The bank will also open a new Apple Savings account, with customers reportedly retaining the option of either moving to JPMorgan-operated accounts or continuing to bank with Goldman Sachs.
Update: Apple issues a confirmation
In a statement issued shortly after the Wall Street Journal's report, Apple has confirmed that JPMorgan and Mastercard will power its new Apple Card, with the transition expected to be completed within 24 months. During this period, cardholders will be able to use their existing cards normally.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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