In a landmark deal reshaping the consumer finance and fintech landscape, JPMorgan Chase has agreed to take over the Apple Card credit-card program from Goldman Sachs. This move ends Goldman Sachs's troubled venture into mass-market lending and solidifies JPMorgan's dominance in the U.S. credit card sector.
The transaction involves JPMorgan becoming the new issuer for the Apple Card, a co-branded program with roughly $20 billion in outstanding balances. Mastercard will continue to serve as the payment network. The deal, which is subject to regulatory approval, is not expected to close for approximately two years.
For JPMorgan, this agreement represents a strategic win, granting access to Apple's large, loyal customer base for cross-selling additional banking products. For Apple, it secures a partner with a vast consumer franchise to help finance and sell its hardware, deepening their collaboration as payments become increasingly embedded in devices.
Goldman Sachs is exiting the partnership at a steep cost, selling the Apple Card loan portfolio at a discount reported to be over $1 billion. This unusual discount reflects the portfolio's higher exposure to subprime borrowers and delinquency rates exceeding industry averages, which had raised credit loss concerns and slowed negotiations. Goldman expects the transaction to result in a one-time boost of 46 cents per share to its fourth-quarter 2025 earnings, offset by a $2.26 billion revenue reduction due to the deal and portfolio markdown.
JPMorgan, for its part, expects to book a $2.2 billion provision for credit losses in Q4 2025 related to its forward purchase commitment. Executives express confidence that the bank's scale and risk management experience will allow it to absorb and grow the program. The bank plans to issue Apple Cards to new and existing customers and is reportedly preparing to launch a new Apple savings account. Existing Apple savings account customers at Goldman will have the choice to stay or move their accounts to JPMorgan during the transition.
The Apple Card, launched in 2019 as a cornerstone of Apple's fintech ambitions, offers cashback rewards of up to 3%. While successful in attracting users, Goldman struggled with operational challenges and losses in consumer banking. Talks between Apple and JPMorgan began in 2024 after Apple and Goldman confirmed the end of their partnership in 2023.
The announcement precedes a key earnings season, with JPMorgan scheduled to report on January 13 and Goldman Sachs on January 15.
