- JPMorgan Chase has a deal to replace Goldman Sachs as issuer of the Apple Card, taking over a roughly $20B loan portfolio while Mastercard remains the network.
- The portfolio will be bought at a more than $1B discount, reflecting weaker credit performance and higher delinquencies.
- JPMorgan expects a ~$2.2B Q4 2025 credit-loss provision tied to the purchase, while Goldman plans to release about $2.5B in reserves as it exits the program.
- The handover is expected to take about two years and needs regulatory approvals, with key Apple Card features initially staying in place.
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This deal marks a significant shift in Apple’s financial services strategy and the broader competitive dynamics of the credit-card industry. For JPMorgan, acquiring this portfolio both strengthens its co-brand presence and demonstrates confidence in its underwriting and loss-management capabilities. Goldman Sachs, by contrast, continues its strategic retreat from consumer banking, offloading a program that has weighed on its financial performance and regulatory record.
Paying over a $1 billion discount signals material credit risk concerns in the Apple Card book—e.g. elevated delinquencies, subprime exposure, perhaps over-optimistic growth expectations under Apple’s model. JPMorgan’s $2.2 billion provision reflects prudent conservatism; however, these losses could evolve depending on consumer credit conditions and macro risks over the transition period. The timeline of two years suggests operational complexity: migrating existing accounts, seamless service, and integrating risk systems while preserving customer goodwill will be challenging.
For Apple, the move allows continued participation in financial services without bearing the operational burden and capital risks associated with credit card issuing. It may permit Apple to focus more on experience, branding, and technology layers (wallet, payment tools, savings options) rather than on underwriting. Retaining services like Daily Cash and the savings account (with optional migration) helps preserve user loyalty; any future changes will be watchpoints.
Open questions include: how JPMorgan will manage or change underwriting standards, fee structure, and features like calendar billing; whether user experience will remain consistent; how regulatory scrutiny (from CFPB, state regulators) may affect terms; what broader impact this has on Goldman’s consumer-banking reputation and Apple’s financial services aspirations; and how competitors might respond.
Supporting Notes
- JPMorgan Chase will become the new issuer of the Apple Card, taking over from Goldman Sachs.
- The outstanding balance of the Apple Card portfolio is approximately $20 billion.
- The purchase is being made at a discount exceeding $1 billion relative to the portfolio’s face value.
- JM expects to take a credit-loss provision of about $2.2 billion in Q4 2025 because of the forward purchase commitment.
- Goldman Sachs will release about $2.5 billion in reserves, boosting its Q4 2025 earnings; however it will forgo roughly $2.26 billion in revenue and incur some costs.
- Mastercard remains the payment network for Apple Card, and many card features (Daily Cash rewards, savings account, spending tools, etc.) will stay in place initially.
- The deal is expected to take roughly two years to complete, subject to regulatory approvals.
- Goldman Sachs’ Apple partnership began in 2019, and its consumer finance business has incurred over $7 billion in losses in recent years.