JPMorgan Chase has reached a definitive agreement with Apple to become the new issuer of the Apple Card, replacing Goldman Sachs.
Once finalized, the deal is expected to move more than $20 billion in Apple Card balances onto JPMorgan's platform, adding meaningful scale to Chase's already expansive consumer finance business.
Financial Impact and Risk Management
For JPMorgan CEO Jamie Dimon, the partnership is another strategic win, The Wall Street Journal reported. Under his leadership, the bank has built a commanding presence across retail banking, investment banking, and premium co-branded credit cards. The Apple Card fits squarely into Chase's long-term strategy focused on scale, customer acquisition, and deeper control of financial ecosystems.
As part of the transaction, JPMorgan plans to record a $2.2 billion provision for credit losses in the fourth quarter of 2025. The charge is tied to the forward purchase commitment of the Apple Card loan portfolio and reflects the bank's conservative approach to credit risk management.
While sizable, the provision is well within JPMorgan's capacity, given its balance sheet strength and consistent earnings power.
The deal remains subject to regulatory approval and is not expected to close for roughly two years. Mastercard will continue as the payment network, ensuring a smooth transition for existing Apple Card holders.
Goldman Sachs' Exit from Consumer Banking
For Goldman Sachs, the agreement marks a clear step away from consumer finance. According to Reuters, CEO David Solomon described the move as nearly completing the firm's pullback from the sector, effectively closing a chapter that proved more challenging than anticipated.
Goldman expects the transaction to boost fourth-quarter 2025 earnings by approximately 46 cents per share, largely due to the release of $2.48 billion in loan-loss reserves. The benefit, however, will be partially offset by a $2.26 billion reduction in net revenue stemming from loan portfolio markdowns and contract termination costs, along with an additional $38 million in expenses.
Goldman and Apple first signaled the end of their partnership in 2023, following sustained pressure on Goldman's consumer business and mounting questions around profitability.
How the Apple Card Partnership Changed Course
When the Apple Card launched in 2019, it set out to challenge traditional credit cards with no fees, daily cashback, and deep integration into Apple's ecosystem. While the product gained traction with consumers, it struggled to align with Goldman's risk and profitability targets, ultimately contributing to the bank's broader retreat from consumer banking.
Talks between JPMorgan and Apple reportedly began in 2024, as Goldman sought a clean exit from a partnership that had once been central to its consumer ambitions.
With JPMorgan set to kick off bank earnings season on January 13 and Goldman reporting on January 15, the Apple Card transition should be watched closely.
Originally published on Tech Times
