JPMorgan Chase has finalized an agreement to take control of the Apple credit card from its initial issuer, Goldman Sachs, as announced by both banks on Wednesday through separate statements.
The negotiation, which concluded after a year of discussions, allows JPMorgan, a significant player in credit cards and retail banking, to expand further. The bank will acquire more than $20 billion in card loans from Goldman, which started to withdraw from consumer finance in 2022.
According to JPMorgan, the transaction is expected to take about 24 months to complete, with a $2.2 billion provision for credit losses set to be reported during its fourth-quarter 2025 earnings next week.
Users will continue to enjoy the card's existing benefits, and it will remain on Mastercard's network, the bank confirmed.
"Chase shares our commitment to innovation and delivering products and services that enhance consumers' lives," stated Jennifer Bailey, an Apple executive managing payments, in the announcement. "We look forward to collaborating to continue providing a top-tier experience."
This contract not only entwines JPMorgan more closely with a major tech entity but also solidifies its status as a leader in American finance. Already, JPMorgan was the largest U.S. credit card issuer by purchase volume before this deal.
For Goldman Sachs, divesting the Apple Card business aids in moving past a challenging phase for CEO David Solomon. Initially entering the credit card sector in 2019 with the Apple Card, Goldman aimed to reshape its offerings.
"This transaction substantially completes the narrowing of our focus in our consumer business," Solomon mentioned in the company's release. "We look forward to continuing to support our customers during the transition to a new issuer as we focus on advancing the strategy we set for our core franchises."
Goldman projected that the transaction would enhance its earnings by 46 cents per share during its upcoming results announcement next week.