Apple Partners with JPMorgan Chase for Apple Card

Apple has chosen JPMorgan Chase as the new issuer for its Apple Card, marking a significant change in its financial operations and ending its collaboration with Goldman Sachs.

On Wednesday, JPMorgan Chase announced that it reached an agreement to take over the issuance of the Apple Card, which will increase its already vast credit card portfolio.

Once the transition is completed, more than $20 billion in Apple Card balances will be transferred to Chase’s systems.

This deal still requires regulatory approval and is expected to unfold over the next couple of years.

Mastercard will continue to act as the payment network for the Apple Card.

This partnership strengthens JPMorgan’s position in the competitive U.S. credit card market and highlights the growth under CEO Jamie Dimon’s leadership.

The bank anticipates recording a $2.2 billion reserve for credit losses related to its new commitments for the Apple Card by the fourth quarter of 2025.

For Goldman Sachs, this move signifies a retrenchment from its consumer banking efforts, which have led to significant financial losses in recent years.

The initial partnership between Goldman and Apple began in 2019 and was seen as a key element of Goldman’s strategy to expand beyond traditional banking.

Despite its no-fee and cash-back promotional features, the Apple Card has faced challenges in achieving stable profits as Goldman deals with the pressures of rising costs in consumer lending and increasing regulatory demands.

Goldman anticipates that this deal might add about 46 cents per share to its earnings in the fourth quarter of 2025, largely from the release of $2.48 billion in loan loss reserves. However, this gain could be counterbalanced by a $2.26 billion decline in net income due to various costs and reductions related to the loan portfolio.