- JPMorgan Chase agreed to take over as Apple Card issuer from Goldman Sachs, with a roughly 24-month transition pending regulatory approval.
- The deal transfers more than $20B of Apple Card balances to Chase, which will book about $2.2B of credit-loss provision in Q4 2025 tied to the forward-purchase commitment.
- Goldman exits another major consumer-banking effort and expects a Q4 2025 EPS boost of about $0.46 as reserve releases outweigh markdowns and costs.
- Apple Card customer terms and features are expected to remain largely intact during the handoff, including 3% Daily Cash and Mastercard network continuity.
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The agreement reflects strategic repositioning by both JPMorgan Chase and Goldman Sachs, with implications for competitive dynamics in consumer finance. For Goldman, this is a continuation of its pullback from consumer banking following underperformance: the Apple Card venture, launched in 2019, had dragged down its return on equity by 75–100 basis points. By exiting the program, Goldman can reallocate capital toward its Global Banking & Markets and Asset & Wealth Management arms.
JPMorgan stands to strengthen its already dominant position in the U.S. credit card market. With over $20 billion in new card balances, the bank further consolidates its advantage. Recognizing a $2.2 billion provisioning in Q4 2025 shows both the financial risk assumed and the discipline JPMorgan applies in acquiring mispriced consumer assets. The longer transition period (~24 months) provides scope for oversight by regulators and mitigates operational risk for all parties.
From Apple’s perspective, there is an opportunity to preserve the user-facing value of the Apple Card while leveraging Chase’s scale and distribution capabilities. The alignment in values cited by Apple and Chase – innovation, design, customer service – suggests Apple seeks to avoid disruption while enabling future enhancements.
Key open questions revolve around how the portfolio transfer will affect credit standards, underwriting, and risk exposure. Goldman reportedly struggled with delinquency rates, especially among subprime borrowers. Will Chase reset risk thresholds or adjust pricing over time? Also, whether and how Apple’s brand experience, particularly its savings product and zero-fee structure, will be preserved remains to be seen. Regulatory conditions – including approvals and consumer protection concerns – could shape final structure. Transition costs and accounting impacts for both banks are also material near-term risks.
Competitive positioning: Chase’s acquisition of the portfolio further isolates competitors; brands like American Express, Synchrony, and Barclays reportedly were considered but didn’t emerge victorious. Apple’s experience with partners appears to favor stability and ability to absorb credit risk. Meanwhile, Mastercard retains the network role – preserving a layer of continuity for users.
Supporting Notes
- Goldman Sachs and Apple announced on January 7, 2026, that JPMorgan Chase will become the new issuer of Apple Card, replacing Goldman Sachs. Transition expected over ~24 months, subject to regulatory approvals.
- The deal includes transferring over $20 billion in outstanding Apple Card balances to the Chase platform.
- Goldman Sachs will recognize a release of ~$2.48 billion in loan loss reserves, boosting EPS by about $0.46 in Q4 2025, offset by revenue markdowns of ~$2.26 billion and about $38 million of expenses.
- JPMorgan plans to record a $2.2 billion provision for credit losses tied to the forward‐purchase commitment in Q4 2025.
- Consumer‐facing features will remain largely unchanged through the transition: 3% Daily Cash back, Mastercard remains the network, access to savings account, Apple Card Family, spending tools, etc.
- Goldman Sachs has been reducing its exposure to consumer finance, and the Apple Card program had earlier been expected to conclude in or before 2030.