By Roger Edwards
February 5th, 2026
BURLINGTON, ON
Paying online through the Mastercard platform.
Your next Apple credit card will come from JPMorgan Chase.
Earlier this week, Apple made a press release stating that Chase will take over the issuing of Apple Cards from Goldman Sachs, which has been behind the tech giant’s credit cards since their 2019 launch. The two US banking behemoths said that the takeover of the $20 billion-strong card loan deal will close within 24 months.
Current Apple Card holders here in Burlington and elsewhere will continue to reap the credit card’s existing benefits and perks. Mastercard will remain the payment network of the card, according to Apple and the two issuers.
The talks between the two lenders, Mastercard, and Apple in the middle reportedly stretched well over a year. Once closed, the deal will see Goldman transfer over $20 billion in Apple Card loans to Chase’s books. On their end, Goldman Sachs will take a $2.2-billion hit in credit card losses and add roughly $0.46 per share, both of which will be reflected in their Q4 earnings.
24 months to seal the deal
The transition won’t happen overnight. Both banks have confirmed that the handover will take about two years to complete, pending regulatory approvals and other procedural requirements.
The Apple logo appears in the office window of JP Morgan Chase.
During this period, Apple Card customers can breathe easy. Nothing changes for now. Your card works exactly as it did before, your rewards stay the same, and your Apple Savings account remains accessible. You’ll still get daily cashback on purchases, and Mastercard continues as the payment network backing your transactions.
Jennifer Bailey, the VP of Apple Pay and Apple Wallet, said: “Chase shares our commitment to innovation and delivering products and services that enhance consumers’ lives.”
Bad bet for Goldman since day one
Goldman Sachs entered the credit card business with plenty of headlines back in 2019, beating out other banks to partner with Apple.
We won’t sugarcoat it; Apple Pay didn’t click well with Goldman Sachs from the beginning. The problems started almost immediately. The US bank reportedly coughed up about $350 to onboard every new Apple Pay customer, and that’s a little shy of threefold the industry average.
Those costs added up fast, and the losses kept piling on year after year. By 2022, Goldman started backing away from consumer finance. The Apple Card losses became too much to ignore, and the bank began looking for an exit.
CEO David Solomon made it clear in this week’s release, saying: “This transaction substantially completes the narrowing of our focus in our consumer business.”
The numbers tell the story. Goldman will book a $2.26-billion hit to revenue from marking down the loan portfolio and covering contract termination costs. However, the bank will also release $2.48 billion in loan-loss reserves.
Chase beat out the ranks of Barclays and American Express
Barclays Bank was one of the big hitters that got beaten out by JP Morgan Chase
JPMorgan Chase wasn’t the only bank interested in taking over the Apple Card business. Several major lenders and banks threw their hats in the ring, including American Express, Synchrony, and Barclays. But one by one, these banks walked away from the negotiating table.
The Apple Card portfolio came with challenges that made other issuers uncomfortable. The customer base includes more subprime and lower-credit borrowers than what most major banks typically serve, and the delinquency rate has run higher than the industry average.
JPMorgan stood firm through the negotiations, but the bank didn’t agree to take on the portfolio without getting something in return. According to sources familiar with the deal, Chase is acquiring the Apple Card business at a discount of more than $1 billion.
Allison Beer, Chase’s CEO of Card & Connected Commerce, said: “[The bank is] proud to deepen our relationship by welcoming them as the newest partner in our industry-leading co-brand credit card program.”
JPMorgan will book a $2.2-billion provision for credit losses in its fourth-quarter 2025 earnings, which the bank reports on a little shy of mid this month.
Investors bullish on Apple stocks
Wall Street’s response to the JPMorgan deal has been mostly positive, particularly when it comes to Apple’s stock. Analysts see the partnership as a natural fit for both companies and a smart move for Apple’s long-term services strategy.
An Apple retail outlet.
The deal matters more for how Apple’s services business develops than for any immediate impact on earnings. Apple has been working to grow its services revenue, which now brings in more than $28 billion per quarter, up from $11 billion just a few years ago.
Investors like that Chase brings real expertise in consumer banking and credit cards. JPMorgan is already the largest credit card issuer in the US by purchase volume. They plan to launch a new Apple-branded savings account program, and current Goldman account holders will have the option to switch over or stay put.
Why Chase takeover of Apple Card is a win-win for everyone
Bringing JPMorgan Chase as the new credit card issuer boards well with pretty much everyone. Jamie Dimon has built Chase to become the no.1 retail bank and by miles. On the back of that, the deal is so good for Dimon that he will be the US first bank to make their Q4 earnings call this month.
The Apple Card: Form over function.
As far as Apple goes, putting Chase at the helm of the Apple Card program is a huge step forward, especially because their AI strategy goes in tandem with JPMorgan’s. At the very least, they can now roll out their savings accounts on the shoulders of a partnership with a sea of expertise in consumer banking.
The biggest win, of course, goes to Apple Card customers. They will continue getting 3% daily cashback, savings accounts, and other perks. More importantly, they continue to be able to spend using their iPhones at online marketplaces like Amazon, retail shops, and wherever other Canadian casino payment methods like Apple Pay and Mastercard are accepted.
Leave a Reply