Apple earlierAnnounceGoldman Sachs has announced a strategic partnership with JPMorgan Chase, the largest bank in the United States, to become the new issuer of the Apple Card credit card service. This news confirms previous market rumors that Goldman Sachs... Intending to exit the consumer finance businessThe rumors.
Apple stated that existing Apple Card user data will be transferred over a transition period of approximately two years, during which usage rights will remain unaffected.
After a year of negotiations, JPMorgan Chase has officially qualified.
According to an earlier report by the Wall Street Journal, Apple and JPMorgan Chase have been discussing this agreement for over a year. In its official statement, Apple confirmed that JPMorgan Chase will replace Goldman Sachs as the new issuing bank for the Apple Card, while Mastercard will continue to serve as the payment clearing network for the Apple Card, unlike...Previous rumorsVisa and Apple have now partnered.
While the details of the deal have not been fully disclosed, sources familiar with the matter revealed that Goldman Sachs transferred approximately $200 billion in outstanding customer balances to JPMorgan Chase at a discount of over $10 billion in order to divest itself of the business, demonstrating its determination to end its partnership with Apple.
Goldman Sachs has been seeking to exit the market for many years.
Goldman Sachs and Apple first partnered to launch the Apple Card credit card service in 2019, which was seen as a significant step for the Wall Street giant into the mass consumer finance market. However, in recent years, there have been persistent reports that Goldman Sachs has been seeking an exit strategy to terminate the partnership due to lower-than-expected profits and regulatory pressure.
This transaction also signifies the end of Goldman Sachs' strategic contraction in the consumer finance sector.
User rights remain unchanged.
For existing Apple Card users, the biggest concern is whether their credit cards will still be usable. Apple's FAQ on its website emphasizes that the current transfer process is expected to take approximately two years to complete. During this period, existing Apple Card features, rewards programs, and usage will remain unchanged. Users do not need to take any immediate action. Apple will notify users separately of any future changes requiring their cooperation.
