- JPMorgan Chase agreed to take over Apple Card from Goldman Sachs, buying about $20B of balances at a more than $1B discount.
- The handoff is expected to take about 24 months pending approvals, with JPMorgan booking a $2.2B credit-loss provision while Goldman releases $2.48B of reserves but takes a $2.26B revenue hit.
- Core Apple Card features and customer accounts are expected to carry over, and Apple and JPMorgan plan an Apple-branded savings product.
- The deal strengthens JPMorgan’s credit-card leadership and completes Goldman’s retreat from underperforming consumer lending.
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The deal for JPMorgan Chase to become the issuer for Apple Card, replacing Goldman Sachs, marks a major realignment in the U.S. co-branded credit card market. By acquiring the ~$20 billion outstanding Apple Card balance portfolio at a discount of more than $1 billion, JPMorgan is inheriting both opportunity and risk: exposure to delinquency, irregular cash flow, and regulatory complexity. The bank’s setting aside of a US$2.2 billion provision for expected credit losses in Q4 2025 reflects prudent provisionary accounting and an acknowledgment of near-term risk.
For Goldman Sachs, the transaction represents a capstone to its retreat from retail consumer finance—once an area of rapid expansion with Apple Card launched in 2019. Under its current leadership, Goldman has been under pressure to improve return on equity and reduce volatility; Apple Card had hurt its financials. The move allows it to release loan loss reserves (~US$2.48 billion), absorb a one-time earnings uplift (~US$0.46 per share), but also accept revenue reductions (~US$2.26 billion).
From Apple’s perspective, the company appears intent on retaining features customers value (3 % Daily Cash, Mastercard network, savings integration) while leveraging JPMorgan’s scale and operational strength. The transition likely gives Apple access to broader financial infrastructure and perhaps better regulatory and customer service resilience than Goldman could command as troubles mounted.
Strategic implications for the competitive landscape are substantial. JPMorgan’s already-leading position in credit card issuance grows further. It widens its customer base—Apple’s customers tend to be affluent and tech-savvy—with cross-sell opportunities. For rivals, the bar for co-brand programs is raised both operationally and risk-wise. For regulators, issues will center around oversight of the transition and consumer continuity. The ~24-month timeline indicates complexity, including consent, data transfer, underwriting, servicing standards, and regulatory approvals.
Open questions include: how JPMorgan will alter underwriting criteria (especially for subprime or new customers), whether Apple will demand changes to data sharing or digital feature design, how defaults/delinquencies are lagging or even accelerating, and what regulatory or compliance challenges may arise during transition. Also: how Apple’s savings account will function under a new issuer, and whether the economics work as well for both sides over the long term.
Supporting Notes
- The portfolio being transferred is approximately US$20 billion in outstanding card balances.
- JPMorgan will pay more than US$1 billion less than the par (face) value of the portfolio.
- JPMorgan expects to recognize a provision for credit losses of US$2.2 billion in Q4 2025 tied to its forward purchase commitment.
- Goldman Sachs will release roughly US$2.48 billion in reserves, producing an earnings boost of approximately US$0.46 per share in Q4 2025; however, Goldman will face a revenue reduction of about US$2.26 billion.
- The transition period is expected to last about 24 months (≈ two years), and remains subject to regulatory approvals.
- Apple Card features like up to 3 % Daily Cash back, Mastercard network, and access to a high-yield Savings account will continue under new issuer; cardholders’ balances, limits, rewards, and payment history carry over.
- Apple and JPMorgan will collaborate on a new Apple-branded savings account; existing savings customers at Goldman Sachs may choose to stay or move to Chase’s version.
- Goldman has been exiting other consumer finance activities (e.g. GM card business) and reported sizable losses in its consumer segment; Apple Card had reduced its return on equity by 75-100 basis points according to David Solomon.