JPMorgan Chase will replace Goldman Sachs Group Inc. as Apple’s partner in the credit card business, according to a source close to the matter.
The agreement should be announced soon, said the source, who preferred not to be identified as the information is not yet public. Representatives for JPMorgan and Goldman Sachs declined to comment. Apple also did not respond to a request for comment.
The news was already expected, as Goldman Sachs has been moving away from consumer credit, an area that has not worked well for the bank, better known for its investment banking activities. Apple, which is headquartered in Cupertino, California, continues to focus on financial services for consumers, dominating the digital wallet market.
Synchrony Financial was also in the running to take over Apple’s credit card program. Analysts already pointed to JPMorgan and Capital One Financial Corp. as possible replacements for Goldman.
The deal with JPMorgan is expected to involve about $20 billion in credit card balances, with a discount of more than $1 billion, according to the source.
The Wall Street Journal was first to report the news on Wednesday.
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