JPMorgan Chase reaches deal to become Apple Card issuer as Goldman closes chapter on consumer foray

In a significant move in the world of credit cards, JPMorgan Chase has sealed a deal to take over the Apple credit card from its original issuer, Goldman Sachs. The agreement, finalized after a year of negotiations, marks a major shift in the industry as JPMorgan will absorb over $20 billion in card loans from Goldman, which recently shifted focus away from consumer finance.

According to statements released by both banks, the transition is expected to take about 24 months to complete. JPMorgan will set aside a $2.2 billion provision for credit losses as part of the deal, which will be reflected in its fourth-quarter 2025 earnings report. Despite the change in ownership, customers can rest assured that the card’s existing perks will remain intact, and it will continue to operate on Mastercard’s network.

Apple’s executive in charge of payments, Jennifer Bailey, expressed excitement about the collaboration with JPMorgan, emphasizing their shared commitment to innovation and enhancing consumer experiences. The partnership further solidifies JPMorgan’s position as a leader in American finance, as it already holds the title of the country’s largest credit card issuer by purchase volume.

For Goldman Sachs, offloading the Apple Card business signifies a strategic shift in focus for CEO David Solomon. The decision to hand over the reins of the Apple Card comes as part of Goldman’s strategy to streamline its consumer business and concentrate on core franchises. The move is expected to boost Goldman’s earnings by 46 cents per share once the transition is complete.

The negotiation process between JPMorgan and Apple saw other interested issuers, such as American Express, Synchrony, and Barclays, bowing out, leaving JPMorgan as the last bank standing. Reports suggest that JPMorgan secured the deal at a discounted price of over $1 billion, underscoring the bank’s determination to take on the Apple Card portfolio despite the challenges it presents.

In addition to the Apple Card portfolio, JPMorgan is also gearing up to offer an Apple savings account as part of a comprehensive range of financial services provided by the tech giant. The collaboration between JPMorgan and Apple signifies a new chapter in the financial landscape, bridging the gap between traditional banking institutions and cutting-edge technology companies.