Chase Takes Over Apple Card in Massive Banking Transition

Goldman Sachs Exits Consumer Credit After Costly Partnership

JPMorgan Chase has reached a deal to become the new issuer of Apple Card, with an expected transition in approximately 24 months . The move marks the end of Goldman Sachs' troubled partnership with Apple that began in 2019, as Goldman Sachs partnered with Apple in 2019 to launch the Apple Card, but regretted the move. The company lost money immediately on Apple Card and began to exit the consumer credit card business completely .

The transition involves over $20 billion in card balances , making it one of the largest credit card portfolio transfers in recent history. Goldman Sachs is offloading this amount at a $1 billion discount , highlighting the financial strain the partnership created for the investment bank.

For Goldman Sachs CEO David Solomon, this deal represents a strategic retreat from consumer banking. "This transaction substantially completes the narrowing of our focus in our consumer business" , Solomon said, as the firm refocuses on its traditional Wall Street operations.

Chase Solidifies Credit Card Dominance

The acquisition strengthens JPMorgan Chase's position as already the country's largest credit card issuer by purchase volume . The deal would cement JPMorgan's position in the credit cards segment and mark another win for CEO Jamie Dimon, under whose leadership the bank has become a dominant force in retail and investment banking .

Chase beat out several major competitors for the Apple partnership. Other interested issuers, including American Express, Synchrony and Barclays, exited the bidding process, leaving JPMorgan as the sole remaining candidate. The bank's willingness to take on the portfolio came with conditions, as JPMorgan would only take on the Apple Card portfolio if Goldman and Apple were willing to make concessions .

Financial Impact and Timeline

JPMorgan expects to record a $2.2 billion provision for credit losses in the fourth quarter of 2025 tied to the forward purchase commitment of the portfolio . Meanwhile, the transaction is expected to add about 46 cents per share to Goldman's fourth-quarter 2025 earnings, driven by the release of $2.48 billion in loan-loss reserves .

The transition to Chase as the issuer of Apple Card is subject to closing conditions and regulatory approvals . During the lengthy transition period, nothing is changing at the moment for consumers, including for those applying for new cards. Existing Apple Card users can continue to use their card as they normally do and enjoy the full Apple Card experience .

What This Means for Apple Card Users

Apple Card holders can expect continuity in their experience. Apple Card users can continue to enjoy the award-winning experience of Apple Card, which includes up to 3 percent unlimited Daily Cash back on every purchase, easy-to-navigate spending tools, Apple Card Family, access to a high-yield Savings account, and more. Mastercard will remain the payment network for Apple Card .

The partnership between Apple and Chase represents a meeting of tech innovation and banking infrastructure. "Apple is an iconic brand recognized globally for its innovation, design excellence, and commitment to delivering exceptional customer experiences," said Allison Beer, Chase's chief executive officer of Card & Connected Commerce. "We share a commitment to supporting consumer financial health, and we're proud to deepen our relationship by welcoming them as the newest partner in our industry-leading co-brand credit card program" .

This transition signals a broader shift in financial services, where traditional banks are increasingly partnering with tech giants to reach digital-first consumers. As the 24-month transition unfolds, it will test both companies' ability to maintain the seamless user experience that has made Apple Card popular while integrating it into Chase's massive banking infrastructure.