- JPMorgan Chase is set to replace Goldman Sachs as Apple Card issuer, buying a $20B+ loan portfolio at a $1B+ discount.
- The handoff is expected to take about 24 months and requires regulatory approval.
- Mastercard stays the network and core Apple Card perks (including Daily Cash and savings tools) are expected to remain during the transition.
- The deal advances Goldman’s exit from consumer banking while expanding JPMorgan’s credit-card franchise.
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The agreement between JPMorgan Chase, Apple, and Goldman Sachs to shift issuance of the Apple Card represents a significant strategic move on all sides. For Goldman, this transaction accelerates its retreat from the consumer lending sector, which has been underperforming. The firm will offload roughly $20 billion in outstanding card balances and will take a discount of more than $1 billion—a highly atypical outcome in co-branded card agreements where the portfolios usually trade at premiums.
From JPMorgan’s perspective, this portfolio acquisition enhances its already dominant consumer credit position. The bank will need to recognize $2.2 billion in provisions for credit losses in Q4 2025 tied to its forward purchase commitment. While this presents near-term financial risk, JPMorgan is betting on the long-term returns of the Apple customer base and the strength of co-branded credit programs.
Operationally, the deal is fairly customer-friendly. Most features will stay the same—card benefits, Mastercard network, savings account offerings—at least through the transition period. Existing users need to choose whether to move their savings accounts; they are not being automatically migrated. Also, physical cards and perhaps backend servicing will shift over time.
Strategically, this reflects broader industry trends. Goldman Sachs continues to scale back its consumer finance ambitions after losses, regulatory scrutiny, and underperforming returns; JPMorgan continues to entrench itself in co-brand and retail banking. For Apple, this move ensures its financial services arm has a partner with scale and robustness as it increasingly handles finance and payments.
Open questions remain: how delinquency risk will be managed post-transition; whether pricing, fees, or rewards will shift once Chase takes full control; and what changes, if any, will occur in regulatory or consumer oversight due to this switch. The implications for data sources, servicing quality, and customer experience also warrant close monitoring.
Supporting Notes
- JPMorgan will acquire over $20 billion of Apple Card outstanding balances under the deal.
- The purchase is at a discount exceeding $1 billion off the face value of the portfolio.
- Transition expected to take approximately 24 months, pending regulatory approvals.
- Mastercard will stay as the payment network for Apple Card.
- Apple Card features such as Daily Cash rewards, spending tools, savings account access will remain during the transition.
- Goldman Sachs will recognize a $2.48 billion release in loan loss reserves, but take a net revenue hit of $2.26 billion and incur $38 million in related expenses; earnings per share are expected to increase by $0.46 for Q4 2025.
- JPMorgan expects to book a $2.2 billion provision for credit losses in Q4 2025 tied to its forward purchase commitment.
- Goldman’s exit is consistent with its ongoing strategy to refocus on its core Global Banking & Markets and Asset & Wealth Management franchises.