Apple Pay Issuer in the US to Change to JPMorgan

Goldman Sachs Withdraws from Consumer Finance Business

Goldman Sachs, which had been the issuer of the Apple credit card, is withdrawing from its consumer finance business, and the issuer will be changed to JPMorgan Chase.

According to the Wall Street Journal (WSJ) on January 7 (local time), JPMorgan has agreed to take over as the issuer of the Apple credit card after a year-long negotiation with Goldman Sachs.

Goldman Sachs decided to transfer the business to JPMorgan after contacting a variety of potential buyers, including American Express, Capital One, Synchrony Financial, fintech companies, and private equity funds.

It is reported that Goldman Sachs will sell the Apple Pay issuing business to JPMorgan at a price discounted by more than $1 billion from the outstanding card balance of approximately $20 billion.

The reason Goldman Sachs is selling the outstanding card balances at a discount is because the delinquency rate of Apple Pay is higher than the industry average. This is also why negotiations between JPMorgan and Goldman Sachs lasted nearly a year.

Goldman Sachs entered into a contract with Apple in 2019 and launched the Apple Pay issuing business. Although the company expressed its intention to expand into the consumer finance sector, it decided to withdraw after losses from the Apple Pay business grew in 2022 and regulatory investigations were launched.