JPMorgan Chase to Acquire Apple Credit Card From Goldman Sachs

JPMorgan Chase has reached an agreement to take over the Apple credit card portfolio from Goldman Sachs, the banks announced Jan. 7. The deal, which follows more than a year of negotiations, involves the transfer of approximately US$20 billion in card loans as Goldman Sachs moves to complete its exit from the consumer finance sector.

Under the terms of the agreement, JPMorgan will acquire the portfolio at a discount of more than US$1 billion to its par value. The bank stated that it expects the transition to take approximately 24 months to close and will book a US$2.2 billion provision for credit losses when it reports fourth-quarter 2025 earnings next week.

The transaction marks a significant step for Goldman Sachs in reversing its 2019 foray into retail banking. David Solomon, CEO, noted that the sale aligns with the firm’s plan to scale back its "Marcus" consumer brand, which faced investor scrutiny and billions of dollars in losses.

“This transaction substantially completes the narrowing of our focus in our consumer business,” Solomon said in a statement. “We look forward to continuing to support our customers during the transition to a new issuer as we focus on advancing the strategy we laid out for our core franchises.”

Goldman expects the transaction to boost its fourth-quarter results by US$0.46 per share, primarily through the release of approximately US$2.5 billion in reserves previously held for possible loan losses.

JPMorgan Chase, already the largest credit card issuer in the United States by purchase volume, will see its portfolio grow even larger. As of late September, the bank held approximately US$235 billion in credit card loans. JPMorgan and Apple also plan to collaborate on an Apple-branded savings account as part of the transition. Allison Beer, Head of Card Business, JPMorgan Chase, said the bank is “excited to innovate together in the future” with the technology giant.

Portfolio Risk and Negotiations

The acquisition was finalized after other potential issuers, including American Express, Synchrony, and Barclays, exited talks. JPMorgan reportedly secured concessions regarding the portfolio's composition, which contains a higher percentage of subprime and lower-credit borrowers than the bank typically services. Sources indicated that Apple had previously pressured Goldman to approve a wide range of iPhone users to maximize the card's reach.

Jamie Dimon, CEO, JPMorgan, has previously identified Apple as an emerging competitor in the digital banking space, stating in 2023 that the tech company was “becoming a bank.”

Despite the change in issuer, customers will retain existing card perks, and the portfolio will continue to operate on the Mastercard network. Goldman Sachs previously transitioned its other major credit card partnership, with General Motors, to Barclays in 2024.