- JPMorgan Chase struck a definitive deal with Apple and Goldman Sachs to become the next Apple Card issuer, assuming a portfolio with over $20 billion in balances in a transition expected to take about 24 months pending approvals.
- Goldman exits the Apple Card program as part of its retreat from consumer banking, after the portfolio underperformed with higher delinquencies and notable subprime exposure.
- The transaction includes a purchase discount of more than $1 billion to par and drives Q4 2025 accounting impacts, including a $2.2 billion credit-loss provision tied to the forward purchase commitment.
- Apple Card features and the Mastercard network are expected to remain intact during the handoff, while the Apple-branded savings product continues but existing Goldman savings accounts do not automatically transfer.
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The deal between JPMorgan Chase and Apple to replace Goldman Sachs as issuer of the Apple Card signifies a major strategic shift across several fronts in consumer finance. For Goldman Sachs, this finalizes a long-running strategy to distill its business toward its traditional strengths in investment banking, markets, and wealth management. The company has, since 2023, been repositioning away from consumer banking, and this transaction “substantially completes the narrowing of our focus in our consumer business,” according to CEO David Solomon. The financials show that Apple Card has been under pressure: higher delinquency rates, sizeable subprime exposure, and burdensome reserve requirements had dragged on returns.
For JPMorgan, the acquisition provides a boost to its credit card scale and offers entry to a large, visible co-brand portfolio with Apple, reinforcing its leadership in consumer finance. The portfolio brings over $20 billion in balances and is being acquired at a discount of more than $1 billion to par value. While JPMorgan is assuming some risk—Q4 2025 plans call for a $2.2 billion provision for credit losses tied to the forward purchase commitment—its operational capacity and risk management practices are likely better suited to absorb these headwinds. The continuity of card features and the Mastercard network should mitigate customer disruption and regulatory scrutiny.
Strategic implications flow both from Apple’s financial services strategy and the overall direction of the card issuer/brand partnership model. Apple deepens its relationship with JPMorgan, which now gains even greater influence in its payments and lending ecosystem. For Apple, anchoring the card program with a bank that excels in consumer credit may help sustain margins and reduce reputational risk. Meanwhile, the transition will pose execution challenges—migration of customers, systems, and contracts over a 24-month window; potential pushback from regulators; and preserving the user-experience intact.
Open questions include: how JPMorgan will manage the pre-existing risk exposed in this portfolio; whether Apple will push for changes to card features or customer segments; how the savings product tied to Apple Card will be integrated under Chase; what regulatory concerns may surface given previous CFPB scrutiny of the Apple-Goldman program; and whether this transaction presages further exits from consumer banking among peers.
Supporting Notes
- Goldman Sachs announced the agreement to transition the Apple Card program and associated accounts to JPMorgan Chase.
- The transition is expected to take approximately 24 months, subject to regulatory approvals.
- The portfolio involves over $20 billion in Apple Card credit card balances.
- JPMorgan expects to record a $2.2 billion provision for credit losses in Q4 2025 tied to the forward purchase commitment.
- Goldman Sachs expects a $0.46 per share increase in Q4 2025 earnings via releasing $2.48 billion in loan loss reserves; offset by a $2.26 billion net revenue hit and $38 million in related expenses.
- Card features (up to 3 % Daily Cash, no fees, Mastercard network, Apple Card Family, high-yield savings) will remain in place during the transition.
- Goldman Sachs has been trying since at least 2023 to end its consumer banking push; the Apple Card was launched in 2019.
- Goldman’s Apple Card business underperformed: higher delinquencies and disproportionate exposure to subprime borrowers.
- The acquisition price includes a discount of more than $1 billion to par value of the portfolio’s face amount.