Already the largest credit card issuer in the US, JPMorgan Chase is approaching a deal to take over its Apple card portfolio from Goldman Sachs.
The bank declined to comment to CNBC. Apple did not immediately return a request for comment.
The negotiations between Jpmorgan and Apple have progressed as previous candidates for cards, including American Express, Synchrony and Barclays, fell aside, said those who refused to identify speaking about consent.
The agreement that JPMorgan will take over Apple cards and its huge loan book will further hone the bank’s reputation as the leader in American finance. With stable cards from JPMORGAN brands and co-branded cards, the Jamie Dimon-led company is the country’s largest issuer by purchase volume.
For Goldman, offloading Apple Card Business helps him navigate beyond CEO David Solomon’s rocky chapter. Goldman defeated other Apple Card issuers and joined the credit card business in 2019 with a fantastic fanfare.
But the card’s high growth rate, coupled with the accounting requirements that forced it to the front load reserve for future losses, caught Goldman’s flatfoot. Facing pressure from partners who are unhappy with the consumer business, Solomon called for the card business to sell its card business out of concern that it would increase in the recession, according to one source.
Goldman won $20.5 billion in total credit card loans at the end of March. The bank is also in the process of moving its General Motors Card business to Barclays.
The Wall Street Journal was the first to report on advanced lectures.
This story is developing. Please check for updates.
