Apple Inc. has officially appointed JPMorgan Chase as the new issuer of the Apple Card, replacing Goldman Sachs in a significant realignment among prominent financial institutions engaged in consumer credit services. This transition points to a considerable reconfiguration within the competitive landscape of U.S. credit card issuers and impacts all three companies' strategic trajectories.
JPMorgan Chase announced the agreement on Wednesday, detailing that the deal will incorporate over $20 billion in outstanding Apple Card balances into its extensive credit card portfolio. Mastercard remains the designated payment network for the Apple Card service, indicating continuity in transaction processing despite the issuer change.
The acquisition is subject to customary regulatory reviews and approvals, with the transition process anticipated to span about two years from the agreement date. Once finalized, this will represent a substantial escalation in JPMorgan Chase’s already expansive credit card business, further consolidating its position as a leading U.S. bank in consumer finance.
Jamie Dimon, the bank’s Chief Executive Officer, sees this development as an important victory reinforcing JPMorgan’s dominance in the credit card market. JPMorgan has indicated plans to recognize a $2.2 billion provision for credit losses in the fourth quarter of 2025 associated with the forward purchase commitment tied to the Apple Card loan portfolio.
For Goldman Sachs, the relinquishment of the Apple Card issuer role marks another retreat from its consumer banking ambitions, which have encountered ongoing challenges including losses and strategic recalibrations. Since initiating their partnership in 2019, Goldman and Apple had worked closely, but in 2023 both parties announced their intent to conclude this arrangement.
The Apple Card, noted for benefits such as cash-back rewards and the absence of annual fees, did not generate the sustainable profitability Goldman Sachs aimed for amid rising operational costs and regulatory pressures in consumer credit. As a result, the bank has chosen to step away from this sector focus and concentrate on other areas.
Goldman Sachs has disclosed that this transaction is anticipated to contribute an estimated 46 cents per share to its earnings in the fourth quarter of 2025. This positive impact mainly stems from releasing $2.48 billion in loan-loss reserves. However, the financial benefits will be partially mitigated by a $2.26 billion reduction in net revenue, encompassing markdowns on the loan portfolio, contract termination expenses, and an additional $38 million in related costs.
The broader banking sector will begin its earnings reporting with JPMorgan Chase's results scheduled for January 13, followed by Goldman Sachs two days later on January 15.
In the immediate aftermath of the announcement, stock movements reflected the news landscape with Apple shares experiencing a slight decrease of 0.0077% in after-hours trading. JPMorgan's shares declined by 0.13% while Goldman Sachs saw a modest gain of 0.083%, according to market data.
JPMorgan continues to demonstrate positive momentum across various timeframes according to stock rankings, suggesting investor confidence remains relatively steady despite the transition.