Apple and JPMorgan Chase have finalized a deal for Chase to take-over the Apple Card partnership from Goldman Sachs. This transition marks a significant shift in the fintech landscape as Goldman exits the consumer lending space and Apple aligns with a more established retail banking powerhouse.
Financial Structure and Risks
The deal centers on a credit card portfolio valued at approximately $20 billion. However, the transition isn’t without its hurdles. Because the portfolio carries a delinquency rate of roughly 4%—higher than many premium card benchmarks—JPMorgan is reportedly purchasing the debt at a discount of over $1 billion.
The immediate financial impact is mixed. JPMorgan expects to set aside $2.2 billion in credit loss provisions during Q4 2025 to brace for potential defaults. Conversely, Goldman Sachs expects a 46-cent boost to its earnings per share as it offloads the assets. Despite the change in bank, the Mastercard network will remain the exclusive processor for the card.
Impact on Cardholders
For the average user, the day-to-day experience will remain largely unchanged during the 24-month migration period. Features like the 3% Daily Cash back and interest-free installments will stay active. A critical distinction arises with the Apple Savings account: while Chase will launch a new branded savings product, existing Goldman Sachs savings customers will not be moved automatically. Users must manually decide whether to stay with Goldman or migrate their funds to Chase.
Strategic Analysis
This partnership is a “win-back” for traditional banking. Goldman Sachs’ venture into consumer banking was costly and culturally difficult; exiting allows them to return to their core strengths in investment banking. For JPMorgan, the $20 billion portfolio offers a massive influx of tech-savvy customers, though the high subprime exposure requires careful management. Apple benefits by stabilizing its financial services with a partner that has the infrastructure to handle scale, potentially leading to smoother customer service and broader integration with Chase’s existing rewards ecosystem.