JPMorgan takes over Apple Card in major consumer finance deal

JPMorgan Chase has agreed to take over the Apple credit-card program from Goldman Sachs, marking a significant shift in the US consumer finance landscape and bringing an end to Goldman’s troubled foray into mass-market lending.

Under the deal, JPMorgan will become the new issuer of the Apple Card, one of the largest co-branded credit-card programs in the country, with roughly $20 billion in outstanding balances.

Mastercard will remain the payment network. The transaction, which is subject to regulatory approval, is not expected to close for around two years.

For JPMorgan, the agreement further cements its position as the dominant force in US credit cards.

For Goldman, it represents the final chapter of an experiment in consumer banking that has weighed on earnings and strategy for several years.

A strategic win for JPMorgan and Apple

The deal is expected to bring JPMorgan and Apple closer at a time when payments are increasingly embedded in smartphones, watches and other devices.

JPMorgan gains access to a large, loyal customer base that can be targeted with additional banking products, while Apple secures a partner with a vast consumer franchise to help finance and sell its hardware.

The move also adds to a series of strategic wins for JPMorgan chief executive Jamie Dimon, under whose leadership the bank has built scale across retail banking, cards and investment banking.

JPMorgan expects to book a $2.2 billion provision for credit losses in the fourth quarter of 2025 related to its forward purchase commitment.

Executives have said they are confident the bank’s scale and experience in managing card risk will allow it to absorb and grow the program over time.

JPMorgan will issue Apple Cards to both new and existing customers.

The bank is also reportedly planning to launch a new Apple savings account.

Existing Apple savings customers at Goldman will be given the choice to stay or move their accounts to JPMorgan during the transition period.

Goldman exits at a steep discount

Goldman Sachs is selling the Apple Card loan portfolio at a discount of more than $1 billion, the Wall Street Journal reported, an unusual outcome for a large co-branded card program.

In stronger partnerships, card balances often sell at a premium of up to 8% or more.

The discount reflects the portfolio’s relatively high exposure to subprime borrowers and delinquency rates that have exceeded industry averages, raising concerns about potential credit losses.

Those risks slowed negotiations and contributed to hesitation from JPMorgan and other banks that previously considered a deal.

Goldman said the transaction would result in a one-time boost of 46 cents per share to its fourth-quarter earnings.

The bank expects revenue to be reduced by $2.26 billion due to the deal and portfolio markdown, offset by the release of $2.48 billion previously set aside for loan losses.

A partnership comes full circle

Apple and Goldman launched the Apple Card in 2019, promising a simplified, fee-free credit card integrated into the iPhone.

The card offers up to 3% daily cashback on purchases from Apple and other select partners; 2% from using Apple Pay; and 1% from using the physical card.

While the product attracted users, Goldman struggled with losses and operational challenges in consumer banking.

In 2023, Apple and Goldman confirmed they would end their partnership, and talks between Apple and JPMorgan began the following year as Goldman sought to unwind the relationship.

The announcement comes ahead of a closely watched earnings season.

JPMorgan, the largest US lender, is scheduled to report results on January 13, while Goldman Sachs reports on January 15.