<\/p>\n
The Apple Card has found a new home at Processing Content<\/p>\n The bank said it expects to move the $20 billion of card balances to its retail banking platform over the next two years, subject to regulatory approvals. <\/p>\n Apple has stood by its bet on consumer-focused financial services, dominating the digital wallet space, but its card portfolio has been in flux since 2023, when “Chase shares our commitment to innovation and delivering products and services that enhance consumers’ lives,” said Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet, in a prepared statement Wednesday. “We look forward to working together to continue to provide a best-in-class experience and exceptional customer service with Apple Card.”<\/p>\n The agreement ends more than a year of speculation of who would take over Apple’s credit card portfolio. Analysts had earlier floated The Wall Street Journal first reported that the deal was official earlier Wednesday.<\/p>\n American Express and Synchrony Financial were also at one time reportedly But higher-than-average delinquency rates in the card portfolio have reportedly been one hitch in negotiations, though some of that could be attributable to the fact that Apple customers’ billing cycles all come at the end of the month, rather than being staggered throughout the month, The Apple credit card portfolio represents approximately $21 billion in receivables, according to Keefe Bruyette and Woods estimates, and could represent about $100 billion in payments volume. To put that in perspective, $100 billion in payments volume represents roughly 1% of Mastercard’s volume and 75 basis points of Visa’s volume. <\/p>\n Mastercard will Payment experts have said that Apple’s credit card portfolio would be a beneficial addition to any of the top credit card issuers because many of its customers are affluent with a penchant to spend. Apple’s growth also has far outpaced the wider credit card industry. <\/p>\n From 2019 to 2021, the Apple Card grew at more than a 53% compounded annual growth rate, according to independent estimates from Crone Consulting. Since then, Apple’s credit card business has grown at a CAGR between 31% and 42%, compared with 4% to 6% CAGR for the top 10 credit card issuers that hold 90% of purchasing power. <\/p>\n Nearly 40% of Apple Card owners had an annual income of $100,000 or more in 2023, and 34% of Apple Card users had an income between $50,000 and $99,999, according to a July 2024 Statistica survey.<\/p>\n