- JPMorgan Chase agreed to become the new issuer of Apple Card, taking over from Goldman Sachs and absorbing more than $20 billion of card balances, pending regulatory approval.
- The migration is expected to take about 24 months, with Mastercard remaining the network and most customer features staying the same initially.
- JPMorgan will book a $2.2 billion Q4 2025 credit-loss provision tied to the forward purchase, reflecting the portfolio’s risk profile.
- Goldman Sachs exits the partnership at a steep cost, selling the portfolio at over a $1 billion discount and taking a roughly $2.26 billion net-revenue hit despite reserve releases.
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On January 7, 2026, JPMorgan Chase, Apple, and Goldman Sachs jointly announced that JPMorgan will become the new issuer for Apple Card, replacing Goldman Sachs, with Mastercard remaining as the payment network. The transaction involves transferring over US$20 billion in card balances to JPMorgan’s platform. The transition period is expected to be about 24 months and is contingent upon regulatory approval.
From a financial standpoint, JPMorgan will provision US$2.2 billion in credit losses in Q4 2025 associated with forward purchase commitments of the portfolio. Goldman Sachs will release approximately US$2.48 billion in loan‐loss reserves, resulting in a projected increase to Q4 2025 earnings per share by about US$0.46, but these gains are offset by a US$2.26 billion reduction in net revenue due to markdowns and termination costs, plus US$38 million in related expenses. The portfolio is being acquired at a discount exceeding US$1 billion relative to its face value.
Strategically, for JPMorgan this enhances its credit card franchise, helping it absorb a significant balance sheet addition in consumer credit. It also extends its collaboration with Apple and strengthens its position in digital payments and consumer‐facing financial services. For Apple, the move might ensure more stable issuance capabilities and potentially smoother product innovation with a larger partner. Goldman Sachs’ exit reflects a broader retreat from consumer finance that has been underway since 2023, as cost and loss pressures mount.
User impact is intended to be minimal initially: existing benefits (3 % Daily Cash, spending tools, Family Card, high-yield savings, etc.) will continue unchanged during the transition, and customers will have options regarding savings account services.
Open questions include exactly how JPMorgan will manage the higher risk portions of the portfolio (notably subprime and higher delinquency balances), how credit terms may shift over time, how the regulatory and consumer protection environments will respond, and whether Apple may seek changes in the payments network in future iterations or launch new financial product offerings as part of this enhanced partnership.
Supporting Notes
- JPMorgan’s acquisition includes “over $20 billion in card balances” moving to its platform.
- The portfolio is being sold at a discount exceeding $1 billion from Goldman’s side.
- JPMorgan will take a $2.2 billion provision for credit losses in Q4 2025 tied to forward purchase commitment.
- Goldman Sachs will release ~$2.48 billion in loan loss reserves, boosting Q4 2025 EPS by roughly US$0.46.
- Goldman also expects a net revenue hit of ~$2.26 billion and related costs of ~$38 million.
- User-facing features (3% Daily Cash, no fees, Mastercard network, savings account, Family Card, etc.) will remain unchanged for now.
- The transition period is estimated around 24 months, pending regulatory approvals.
- Goldman’s exit is part of its broader retreat from consumer banking, reallocating capital away from platforms incurring outsized losses.
- Mastercard will continue as payments network; Apple and JPMorgan plan to maintain current card product features.