JPMorgan nearing deal to take over Apple Card portfolio from Goldman Sachs: Report

JPMorgan Chase is close to securing a deal to take over the Apple Card portfolio from Goldman Sachs, according to people familiar with the matter. If finalised, the agreement would mark a major shift in one of Apple’s most high-profile financial partnerships and further cement JPMorgan’s position as the largest credit card issuer in the United States.

The Wall Street Journal first reported on the advanced stage of negotiations.

Sources told CNBC that JPMorgan has emerged as the frontrunner in discussions with Apple after other potential partners, including American Express, Synchrony and Barclays, were no longer in the running. While the final terms are still being negotiated, JPMorgan is reportedly seeking changes to how the card is serviced before committing to the deal.

For JPMorgan, adding the Apple Card would expand an already dominant presence in the credit card market. The bank, led by CEO Jamie Dimon, currently issues a broad portfolio of JPMorgan-branded and co-branded cards and leads the US in purchase volume.

Goldman Sachs, meanwhile, has been looking to exit the consumer credit space. It entered the card business with significant ambition in 2019 by winning the Apple Card partnership, but the venture proved more complex and costly than expected. The bank’s consumer strategy came under scrutiny due to the card’s rapid growth and regulatory challenges around billing and refunds.

Goldman was required to set aside large reserves for potential losses early in the program, which impacted its bottom line. According to one source, CEO David Solomon pushed for the exit partly out of concern that loan defaults would increase during a potential economic downturn. At the end of March, Goldman reported $20.5 billion in total credit card loans and is also in the process of transferring its General Motors card portfolio to Barclays.

For Apple, partnering with JPMorgan could bring greater operational discipline and reduced regulatory risk. JPMorgan is reportedly negotiating for service-related concessions before it formally signs on. Goldman’s original agreement was set to last through 2029.