JPMorgan Chase is reaching an agreement to become an issuer for Apple’s credit card, the source says

JPMorgan Chase Reached an agreement to acquire apple Credit card from its original source, Goldman SachsAccording to what a person familiar with the deal said.

This arrangement, which will be announced soon after a year of negotiations between the two parties, means that the credit card giant and retail banking in general will grow further. JPMorgan will acquire nearly $20 billion in card loans from Goldman, which began shifting away from consumer financing in 2022.

The deal, which further entangles JPMorgan with a dominant technology player, burnishes the bank’s reputation as a leader in American finance. Even before this deal, it was already the country’s largest credit card issuer by purchase volume.

For Goldman, offloading its Apple Card business helps it weather the difficult dismissal of CEO David Solomon. Goldman entered the credit card business with a bang in 2019 by taking on other issuers of the Apple Card.

In July, CNBC reported that talks between JPMorgan and Apple had progressed, with JPMorgan becoming the last bank standing after other interested issuers, including American Express, Synchrony and Barclays, exited.

At the time, people familiar with the matter said JPMorgan would only acquire Apple’s Card portfolio if Goldman and Apple were willing to compromise.

It appears as if JPMorgan has succeeded on at least one front: It is acquiring the Apple Card wallet at a discount of more than $1 billion, according to the person familiar with the deal, who spoke on the condition of anonymity about the details of the confidential deal.

The portfolio contains more subprime, low-credit borrowers than JPMorgan typically serves, people familiar with the business told CNBC. Apple wanted Goldman to serve as many iPhone users as possible, the sources said.

JPMorgan also plans to offer an Apple Savings Account as part of a suite of financial services offered by the tech giant.

JPMorgan and Goldman declined to comment. The Wall Street Journal was the first to report on the deal.