JPMorgan Chase has officially taken over the Apple Card from Goldman Sachs, marking a significant shift in the financial landscape. This deal concludes over a year of speculation about who would manage Apple’s lucrative $20 billion credit card portfolio. The transition is expected to span two years and is contingent on regulatory approvals.
JPMorgan Chase, the largest credit card issuer in the United States, plans to migrate the $20 billion in card balances to its retail banking platform. Goldman Sachs has been managing the Apple Card since its launch in 2019, but the bank has shifted its focus away from consumer banking, as noted by CEO David Solomon in a recent statement. Solomon emphasized the bank’s commitment to supporting its customers during this transition to a new issuer.
Apple remains steadfast in its dedication to consumer-oriented financial services. Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet, expressed that JPMorgan shares the company’s vision for innovation and enhancing customer experiences through the Apple Card. This collaboration aims to maintain a high standard of service as the transition unfolds.
JPMorgan’s acquisition of the Apple Card comes after many potential suitors were speculated, including Capital One, American Express, and Synchrony Financial. However, concerns over higher-than-average delinquency rates in the card portfolio posed challenges during negotiations. Industry experts have noted that the billing cycles of Apple customers may contribute to these delinquency rates.
As a part of their preparation for possible credit hits, JPMorgan announced a $2.2 billion provision for credit losses, reflecting a cautious approach as they assume control of the portfolio. For Goldman Sachs, the transaction is expected to add 46 cents a share to earnings in the fourth quarter of 2025. As part of the deal, Goldman released $2.5 billion of loan loss reserves, although it also faced a $2.3 billion reduction in net revenues due to markdowns on outstanding credit card loans and other expenses.
The Apple Card portfolio, estimated at about $21 billion, has shown impressive growth, especially when compared to the broader credit card industry. From 2019 to 2021, the card grew at a remarkable rate of over 53% annually. This growth has continued, with a year-over-year increase for Apple Card users, who predominantly belong to higher-income brackets. Nearly 40% of Apple Card holders reported annual incomes of $100,000 or more in 2023.
As JPMorgan Chase takes on this substantial portfolio, experts believe that Apple’s affluent customer base positions the Card as a valuable asset for the bank. The partnership is expected to rejuvenate the customer experience and maintain the Apple Card’s status as a leading product in the market, as both companies work together to enhance services for their clientele.