- JPMorgan Chase agreed to take over the Apple Card from Goldman Sachs, acquiring a more than US$20 billion portfolio pending regulatory approval and an expected ~24-month transition.
- Goldman is selling at a discount of over US$1 billion, booking a ~US$2.48 billion reserve release but facing revenue losses and deal costs as it exits consumer lending.
- JPMorgan expects a US$2.2 billion credit-loss provision in Q4 2025 tied to the forward purchase commitment.
- Apple says customer features such as Daily Cash rewards, Apple Card Family, Mastercard network, and savings-related options will remain largely unchanged initially.
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The transaction represents a strategic reshaping of Apple’s financial services relationships and a significant maneuver within the U.S. consumer credit card sector.
Implications for JPMorgan Chase
By taking over Apple Card, JPMorgan gains immediate scale with a large, established portfolio (>$20 billion in balances), expanding its co-brand card franchise. The forward interest costs—especially provisioning for expected credit losses (US$2.2 billion in Q4 2025)—will impact earnings in the near term but may be manageable given its scale and diversified card business. The bank will incur integration and transition costs, but it inherits a card product with high demand and loyalty, thanks to Apple’s brand and ecosystem.
Impacts on Goldman Sachs
This deal accelerates Goldman’s retreat from consumer banking, especially as Apple Card was one of its higher-profile consumer finance ventures. Goldman will benefit from a sizable reserve release (~US$2.48 billion), boosting Q4 2025 earnings by about US$0.46 per share. However, it also faces nearly US$2.26 billion in net revenue losses and ~US$38 million in transaction costs. These trade-offs reflect a shift to de-risk its exposure to delinquency and subprime elements in the portfolio.
Effects on Apple and Customers
Apple benefits by partnering with a bank that has a much broader and more stable credit card infrastructure. For Apple Card users, the message is continuity: cashback rewards, savings offerings, and Mastercard network stay in place. However, customers may see late changes in terms (e.g. credit limits, billing cadence) when the transition nears, or be given choices (e.g. about savings account provider). Apple may also see incremental revenue or cost implications via its savings products and brand partnerships.
Wider Industry Context
This marks another example of large banks absorbing portfolios with weaker credit profiles, especially as smaller or more specialized institutions pull back from consumer finance. It underscores the importance of scale, risk control, and regulatory navigation in the co-brand card market. It also signals Apple’s increasing maturity in its financial offerings: less a fringe maker of gadgets, more a full-stack services company with financial rails.
Open Questions
• How credit quality is distributed across the portfolio—what share is subprime or nonperforming, and how will this affect JPM’s future reserve requirements?
• What contract terms exist around customer economics: will Apple negotiate revenue-sharing shifts, data-access models, or operational constraints?
• Will product features evolve under JPMorgan: possible changes in billing, late-fee structure, card limits, or reconciliation of the savings-account tie-in?
• Regulatory risks: what antitrust, consumer protection, or banking regulation issues might arise given scale and branding?
• Competitive implications: how will this affect other co-brand card issuers and networks, including potential challenges from Visa or American Express?
Supporting Notes
- JPMorgan will become the issuer of Apple Card, replacing Goldman Sachs, with Mastercard remaining as the card network.
- The transition is subject to regulatory approval and expected to take about 24 months.
- Over US$20 billion of existing credit-card balances will move to Chase’s platform under the deal.
- Goldman Sachs is selling the portfolio at a discount exceeding US$1 billion to its face value.
- JPMorgan expects to make a US$2.2 billion credit-loss provision in Q4 2025 tied to its forward purchase commitment.
- Goldman Sachs will release approximately US$2.48 billion in loan-loss reserves, generating ~US$0.46 per share benefit in earnings in Q4 2025; offset by US$2.26 billion net revenue hit and ~US$38 million in related costs.
- Apple confirms users will continue to get 3% Daily Cash, use Apple Card Family, savings options, and other features without immediate change.
- Apple Card was launched in 2019 via partnership with Goldman Sachs.