Apple and JPMorgan Chase announced that Chase will become the new issuer of Apple Card, replacing Goldman Sachs in a transaction expected to complete in approximately 24 months.

The deal will transfer over $20 billion in card balances to Chase's platform, marking a significant expansion of the largest US bank's credit card business. JPMorgan Chase expects to recognise a $2.2 billion provision for credit losses in the fourth quarter of 2025 related to the forward purchase commitment.

For Goldman Sachs, the transaction represents another step in unwinding its consumer banking ambitions. The bank's chief executive officer David Solomon said the deal "substantially completes the narrowing of our focus in our consumer business". Goldman expects the transaction to add about 46 cents per share to its fourth-quarter earnings, driven by the release of $2.48 billion in loan-loss reserves.

The Apple Card was launched in 2019 as part of Goldman's retail banking push under its Marcus brand. However, the consumer business proved unpopular with investors and accumulated billions of dollars in losses, leading Solomon to dramatically scale back the effort in late 2022.

Mastercard will remain the payment network for Apple Card, and existing cardholders can continue to enjoy benefits including up to 3 per cent unlimited Daily Cash back on purchases, access to a high-yield savings account, and Apple Card Family sharing features.

"Chase shares our commitment to innovation and delivering products and services that enhance consumers' lives," said Jennifer Bailey, Apple's vice president of Apple Pay and Apple Wallet. "We look forward to working together to continue to provide a best-in-class experience and exceptional customer service with Apple Card."

Allison Beer, Chase's chief executive officer of Card & Connected Commerce, said the bank was "excited to innovate together in the future" with Apple.

The partnership deepens the relationship between two corporate giants that have sometimes been at odds. JPMorgan chief executive officer Jamie Dimon has previously called out Apple as an emerging competitor as banking becomes increasingly digital, saying in 2023 that Apple was "becoming a bank".

During the transition period, Apple Card users can continue to use their card as normal. The deal is subject to regulatory approvals.

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