JPMorgan strikes deal to run Apple's credit card business
What's the story
JPMorgan Chase has announced a deal to take over Apple's credit card business from Goldman Sachs. The partnership will see the tech giant's popular Apple Card program, one of the largest co-branded credit card programs in the US, transition to JPMorgan. The move comes after years of speculation that Goldman Sachs was looking for an exit strategy from its partnership with Apple.
User impact
What it means for Apple Card users
The transition to JPMorgan Chase will be gradual, taking about two years to complete. However, Apple has assured its customers that they can continue using their Apple Cards as usual during this period. The tech giant has already published an FAQ on the change, emphasizing that the status quo is currently continuing and customers will be informed later if any action is required.
Partnership shift
Goldman Sachs's exit and JPMorgan's new role
Goldman Sachs was Apple's partner when it launched the Apple Card in 2019. However, the bank has been struggling with operational challenges and regulatory scrutiny, prompting a strategic rethink. Now, JPMorgan Chase will take over as the issuer of the Apple Card. The transition will see over $20 billion in card balances move to Chase's platform once completed.
Future plans
JPMorgan's plans for Apple Card and savings account
JPMorgan Chase will issue Apple Cards to both new and existing customers. The bank also plans to launch a new Apple-branded savings account. Existing customers of Goldman Sachs's Apple savings will be given the option to stay or switch over to JPMorgan. Despite the transition, Mastercard will continue as the payment network for the Apple Card under this new partnership.
Cost impact
Financial implications of the transition
Goldman Sachs is expected to offload about $20 billion of outstanding Apple Card balances at a discount of over $1 billion. The bank's CEO David Solomon said this transaction "substantially completes the narrowing of our focus in our consumer business." Meanwhile, JPMorgan Chase expects to record a $2.2 billion provision for credit losses in Q4 2025 related to the forward purchase commitment of the portfolio.