- JPMorgan Chase will replace Goldman Sachs as Apple Card issuer, taking over more than $20B in balances over about 24 months, with Mastercard staying the network.
- Goldman will sell the portfolio at a reported $1B+ discount, take revenue and one-time cost hits, but expects a Q4 2025 EPS lift (~$0.46) largely from releasing ~$2.48B of loan-loss reserves.
- JPMorgan will book a $2.2B credit-loss provision tied to the forward purchase commitment as it absorbs the portfolio and integration work.
- Apple says cardholder benefits should remain unchanged, while the move underscores Goldman’s retreat from consumer finance and strengthens JPMorgan’s card dominance pending regulatory approvals.
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The announced transition of the Apple Card from Goldman Sachs to JPMorgan represents a material reallocation within U.S. consumer credit. Goldman, which launched the Apple Card partnership in 2019, has struggled with the economics of consumer lending, including elevated defaults, regulatory scrutiny, and the capital intensity of the business. The decision to offload the $20 billion card portfolio — at a discount exceeding $1 billion, per reports — reflects both acknowledgement of controllable losses and a strategic decision to refocus on higher-margin divisions.
For JPMorgan, acquiring this portfolio is a growth play, adding scale to its credit card platform, which continues to lead U.S. issuers by purchase volume. The bank’s decision to set aside a $2.2 billion provision ahead of the transfer reflects conservative risk management and recognition that part of the portfolio may underperform. Operationally, the bank must integrate account servicing, maintain brand consistency with Apple, and meet regulatory expectations.
For Apple, the transition likely offers improved partner stability, given JPMorgan’s track record in retail banking and payments infrastructure. Apple insists cardholders’ benefits—Daily Cash, no fees, Mastercard network access, etc.—will remain unchanged. However, the shift may enable Apple to expand its financial services offerings, including via savings accounts and co-branded products. Retaining customer features will be critical to avoid backlash.
Strategically, several implications surface:
- Goldman Sachs will record both a short-term earnings boost (via freeing up reserves) and a long-term income decline, including foregone interest income and ongoing servicing costs. Its reduced exposure to consumer risk reduces capital demands but also shrinks the addressable market in everyday banking.
- JPMorgan gains net interest income, customer balances, and cross-selling potential (e.g. savings, other credit products) with a pre-existing consumer base with Apple demographics. However, it must manage credit risk in the portfolio as well as integration costs.
- Apple avoids product disruption in the near term but must monitor partner performance and compliance, especially given past regulatory challenges involving billing, refunds, and treatment of consumers.
- The deal underscores the tightening regulatory environment for consumer finance, especially for banks expanding outside core competencies. It may disincentivize other financial institutions from aggressively chasing consumer credit without strong risk frameworks.
Open questions remain. How will customer terms evolve post-transition, especially interest rates or rewards structure? What regulatory approvals might pose hurdles or demand concessions? Will JPMorgan innovate further in Apple’s financial services ecosystem, or simply carry forward existing terms? Lastly, how will this compare financially to other portfolio transitions (e.g. GM card over to Barclays) in terms of value per balance acquired?
Supporting Notes
- JPMorgan will become the issuer of Apple Card; Mastercard remains payment network; transition ~24 months.
- Portfolio size: over $20 billion in card balances are to move to Chase.
- Goldman Sachs will take a revenue hit: approximately $2.26 billion in reduced net revenues tied to markdowns and contract termination, plus $38 million in expenses.
- Goldman expects a $0.46 per share increase in Q4 2025 earnings, driven by releasing ~$2.48 billion of loan loss reserves, partially offset by the aforementioned revenue reduction and expenses.
- JPMorgan will record a $2.2 billion provision for credit losses in Q4 2025 tied to forward purchase commitment of the Apple Card portfolio.
- The deal reflects Goldman’s broader strategic retreat from consumer banking; it recently sold its GM card business to Barclays, and Marcus’ consumer expansion had been costly.
- Apple promises that key cardholder benefits will remain unchanged: up to 3% unlimited Daily Cash back, Apple Card Family, high-yield savings account, etc.
- The transition is subject to regulatory approvals.
- The economics of the deal, according to market reports, reflect Goldman selling at a discount exceeding $1 billion from face value of the portfolio.