Apple Card Will Move From Goldman Sachs to JPMorgan Chase

[MacRumors]

JPMorgan Chase has reached a deal to take over operation of the Apple Card, reports The Wall Street Journal. Barring any "last minute hiccups," the deal should be announced shortly after over a year of negotiations.

Reports began circulating over two years ago that current Apple Card issuer Goldman Sachs was looking to end its partnership with Apple as part of an effort to scale back on consumer banking products amid steep losses.

According to The Wall Street Journal, Goldman Sachs is unloading its roughly $20 billion of outstanding Apple Card balances at a discount of more than $1 billion, a rare move for co-branded account deals like this. But higher-than-average delinquency rates and high exposure to subprime borrowers made it more difficult for Goldman Sachs to find a buyer.

JPMorgan Chase's interest in taking over as Apple Card issuer was reported over a year ago, and by this past summer Chase appeared to be the front-runner.

Alongside its new Apple Card partnership, JPMorgan Chase will reportedly launch a new Apple savings account, but existing users with Apple savings accounts at Goldman Sachs will not be automatically transitioned and will need to decide whether they want to stay at Goldman Sachs or open new accounts with Chase.

Update 2:27 pm: Apple has officially announced the change to Chase, with the transition expected to occur in approximately 24 months. Apple Card will remain on the Mastercard network following the shift.

"We're incredibly proud of how Apple Card has transformed the credit card experience for customers by delivering innovative tools that empower users to make healthier financial decisions," said Jennifer Bailey, Apple's vice president of Apple Pay and Apple Wallet. "Chase shares our commitment to innovation and delivering products and services that enhance consumers' lives. We look forward to working together to continue to provide a best-in-class experience and exceptional customer service with Apple Card."

Apple has also posted an FAQ about the transition.

Article Link: Apple Card Will Move From Goldman Sachs to JPMorgan Chase

 

[jz0309]

Better than Amex (way limited acceptance) for sure ...

 

[WarmWinterHat]

(checks my Chase savings account)

Prepare for a 0.01% interest rate!

 

[F23]

give us more cashback categories Timmy

 

[poematik13]

Theyre gonna shave down everybodys limits for sure- stock up on as many 0% financed hardware as you can lol

 

[quagmire]

I am happy with Chase taking over.

 

[al256]

The interest rate on the savings will be awful

 

[klasma]

Apple Card seems to be kind of a hot potato.

 

[supergt]

Chase is supremely stingy on their savings account APY. Despite the negative comments about GS, at least they offer a very competitive savings product.

 

[Oman]

If GS allow for the saving account to stay with them... i may leave it there or move to AMEX. I will see if Chase start a HYSA account specifically for Apple card holders.

 

[jayducharme]

existing users with Apple savings accounts at Goldman Sachs will not be automatically transitioned and will need to decide whether they want to stay at Goldman Sachs or open new accounts with Chase.

This is not a pleasant scenario. They both can't be "Apple Savings" accounts. I guess my decision will depend on the interest rates. Or I might just move the money to a local bank.

 

[dmr727]

I posted this on the other thread, but Chase's standard Freedom Unlimited card is 1.5% back and has foreign transaction fees. It'll suck if they nerf the Apple Card to match.

 

[cateye]

Apple Card seems to be kind of a hot potato.

This has been common knowledge among card flippers and industry bloggers for a while. There was something curiously out of whack between the Apple Card's marketing as a "premium" card (which it really isn't, given its meager menu of benefits) and the reality that it was increasingly adopted by people who probably shouldn't be carrying open credit lines from anyone. The delinquency rates I've seen reported are bonkers. Maybe Apple was putting pressure on Goldman Sachs to drive adoption or maybe Goldman Sachs thought selling dollars for 50¢ = Profit, or maybe a little of both.

Chase runs a tight ship and has no stomach for targeting subprime borrowers the way Capital One does with a handful of their card products, so they're going to squeeze that audience then likely dump them in waves. This is SOP in the industry when taking on another bank's bad debt.

I also wouldn't necessarily judge the interest rate on a Chase-supplied "Apple Savings account" based on their regular savings products. Any bank can offer whatever interest rate they want. There's nothing preventing Chase from spinning up a competitive HYSA. The question is, do they need to? HYSA's are a way for banks to increase cash holdings as a hedge against debt. Chase has zero need for that. But they may still want to do it as an olive branch toward Apple if it's something Apple really wants. (shrug) we'll see.

 

[WarmWinterHat]

If GS allow for the saving account to stay with them... i may leave it there or move to AMEX. I will see if Chase start a HYSA account specifically for Apple card holders.

Do you currently have one with AMEX? They hound me to open a savings and/or checking account every time I login.

 

[donawalt]

The WSJ article said consumers will have the choice of sticking with Apple Savings or moving to JPM's new Savings offering. I assume that means it should be competitive. It also said that JPM is offloading about $10 billion in outstanding debt to a 3rd party, at a substantial discount - rather unheard of, but the hangup in it taking 2 years to get a replacement for GS was due to the industry knowledge that Apple has one of the highest default rates/poor credit performances in the industry with the current card - no one wanted to touch it.

I hope they decide to turn on download capability to Quicken instead of just supporting a bunch of small-time apps like Goldman Sachs does. I would use my Apple Card a LOT more if I had auto-download daily of my transactions, like every other credit card does.

 

[digweed014]

Dang. GS has kept savings interest relatively competitive the past 12 months (even though they had a period maybe 2023 where they were falling a bit behind). Plus everything else has worked splendidly for me. Worried this will make it worse. One area for potential improvement though is more cashback categories

 

[Cheesehead Dave]

I'd be happy if they converted it to Visa so I can finally use it at Costco.

 

[ugahairydawgs]

I'd be happy if they converted it to Visa so I can finally use it at Costco.

Exactly my thought.

 

[kasei]

So it is a best guess that we will receive a completely new card because of the switch from Mastercard to Visa.

 

[krell100]

Still not available in Australia so, you know, care factor.

 

[TFrank2]

The Chase Sapphire is my preferred card these days as it is, so despite all the negative comments on Chase (many deserved) this will likely just be another Chase card in my collection. Beyond the occasional Apple hardware purchase, it mostly goes unused anyway. The savings account is where I really think the shift is the most significant and I’ll be interested to see what they offer and how many (or really how few) make the jump to JPM over GS unless GS were to radically alter their rate.

 

[alexandr]

Thank got it's not AmEx — as much as I love them, using their cards abroad is a complete nightmare.

 

[CaptFuzzyBuns]

JPMorgan Chase has reached a deal to take over operation of the Apple Card, reports The Wall Street Journal. Barring any "last minute hiccups," the deal should be announced shortly after over a year of negotiations.

Reports began circulating over two years ago that current Apple Card issuer Goldman Sachs was looking to end its partnership with Apple as part of an effort to scale back on consumer banking products amid steep losses.

According to The Wall Street Journal, Goldman Sachs is unloading its roughly $20 billion of outstanding Apple Card balances at a discount of more than $1 billion, a rare move for co-branded account deals like this. But higher-than-average delinquency rates and high exposure to subprime borrowers made it more difficult for Goldman Sachs to find a buyer.

JPMorgan Chase's interest in taking over as Apple Card issuer was reported over a year ago, and by this past summer Chase appeared to be the front-runner.

Alongside its new Apple Card partnership, JPMorgan Chase will reportedly launch a new Apple savings account, but existing users with Apple savings accounts at Goldman Sachs will not be automatically transitioned and will need to decide whether they want to stay at Goldman Sachs or open new accounts with Chase.

Article Link: Apple Card Will Move From Goldman Sachs to JPMorgan Chase

Apple is a premium brand. The 3% cashback with select merchants is nice, but limited. Give us a card with premium benefits.

 

[dynamojoe]

I don’t mind Chase (I have quite a few accounts there and there’s a branch near me) but I’m not thrilled about yet another shuffling of the deck chairs. I’ll start shopping for a high interest savings account if Chase doesn’t try to match the Apple Savings 3.65%.

 

[PBG4 Dude]

So it is a best guess that we will receive a completely new card because of the switch from Mastercard to Visa.

Wonder if they’ll switch from titanium to aluminium cards.