JPMorgan Wins Apple Card Deal, Taking Over $20B in Balances

What Did JPMorgan and Apple Agree To?

JPMorgan Chase and Apple have reached an agreement under which the largest U.S. bank will become the new issuer of the Apple Card, replacing Goldman Sachs. The companies said the transaction is expected to bring more than $20 billion in credit card balances onto JPMorgan’s platform once completed.

The deal remains subject to regulatory approval and is not expected to close for roughly two years. Mastercard will continue to serve as the payment network for the Apple Card.

For JPMorgan, the move extends an already large credit card business and adds a high-profile consumer brand to its portfolio. The bank said it expects to record a $2.2 billion provision for credit losses in the fourth quarter of 2025 related to the forward purchase commitment tied to the portfolio.

Investor Takeaway

Why Is This a Strategic Win for JPMorgan?

The transaction further expands JPMorgan’s already dominant position in U.S. credit cards, reinforcing a franchise that spans mass-market, co-branded, and premium products. Adding Apple Card balances would deepen Chase’s reach among tech-focused consumers while keeping JPMorgan embedded in everyday spending.

The bank said the deal would bring more than $20 billion in balances onto its platform, a sizable addition even for an institution of JPMorgan’s scale. That growth comes at a cost, however. The expected $2.2 billion credit loss provision reflects the bank’s cautious approach to absorbing an existing loan book amid uncertain consumer credit conditions.

The agreement also adds to a string of strategic successes under Chief Executive Jamie Dimon, during whose tenure JPMorgan has grown into a leading force across retail banking, investment banking, and payments. The Apple Card partnership places JPMorgan at the center of one of the most visible consumer products in the U.S.

What Does Goldman Sachs Gain by Exiting?

For Goldman Sachs, the deal represents another step away from consumer banking later than several years of retrenchment. Goldman and Apple announced in 2023 that they were ending their partnership, which had begun in 2019 and was once a cornerstone of Goldman’s push into mass-market finance.

“This transaction substantially completes the narrowing of our focus in our consumer business,” Chief Executive David Solomon said.

Goldman said the transaction is expected to add about $0.46 per share to its fourth-quarter 2025 earnings, driven mainly by the release of $2.48 billion in loan-loss reserves. That benefit will be partly offset by a $2.26 billion reduction in net revenue related to marking down the loan portfolio and contract termination costs, along with $38 million in expenses.

The Apple Card, known for features such as no fees and cashback, had struggled to meet profitability targets. Goldman’s broader consumer push faced higher-than-expected losses and operational challenges, prompting the bank to reassess the strategy and unwind partnerships tied to it.

Investor Takeaway

How Did the Deal Come Together?

Discussions between JPMorgan and Apple began in 2024, as Goldman sought an exit from the partnership. The talks followed Apple’s decision to find a new banking partner later than growing dissatisfaction with the arrangement.

The original Apple Card launch in 2019 was viewn as a bold step for Goldman, pairing a bank with a consumer tech giant. Over time, the alliance became a drag on earnings as losses mounted and regulatory scrutiny increased.

For Apple, the shift to JPMorgan offers a partner with deep experience in consumer credit and a large servicing platform. For JPMorgan, the deal fits neatly into a long-term focus on payments, cards, and consumer finance, areas where scale and operational discipline matter most.

What Happens Next?

The transaction will take time to complete, with closing expected in roughly two years. Regulatory approval remains a key hurdle, and JPMorgan will need to integrate the portfolio while managing credit risk during the transition.

The timing also places the announcement just ahead of the season. JPMorgan is scheduled to report results on January 13, with on January 15. Investors are likely to watch closely for further detail on capital impact, credit assumptions, and how the deal fits into JPMorgan’s broader growth plans.