JPMorgan Chase is reportedly in ongoing discussions to become the new issuer of the Apple Card, taking over the role currently held by Goldman Sachs. Although the deal is not finalized yet, Apple seems to prefer JPMorgan as its new partner, reports the Wall Street Journal. Goldman Sachs, which launched the Apple Card with the iPhone maker in 2019, has been trying to leave the consumer credit business due to rising losses. Apart from financial losses, Goldmanâs exit from the consumer banking sector has also been driven by regulatory scrutiny and other factors. If the deal is confirmed, JPMorgan would take over a portfolio with around $20 billion in outstanding balances.
Notably, the Apple Card was initially promoted as a customer-friendly product with features like no fees, daily cash-back rewards, and strong integration with the iPhone and Apple Wallet. However, the cardâs structure has created problems for Goldman. The card does not charge late fees, which means the bank earns no money when users miss payments. On top of that, many Apple Card users have low credit scores (reportedly around 34% have a credit score below 660), which increases the risk for the issuing bank.
Under such pressure, Goldman Sachs has witnessed rising losses tied to the Apple Card. Even the bank has allocated around $2.45 billion in reserves to cover potential credit losses from the card portfolio. Delinquency rates (late or missed credit card payments) have also increased, reaching around 4%, compared to the industry average of about 3%. Actually, Goldman entered consumer banking to diversify its revenue beyond investment banking and trading, but the move proved costly, with reports showing billions in losses from the venture. As a result, the company has decided to terminate its partnership with Apple.
Meanwhile, the Cupertino-headquartered tech behemoth began searching for a new financial partner in 2024. Even though several major banks like American Express, Synchrony, and Barclays were considered, they reportedly did not move forward. In April 2025, a report emerged suggesting that Visa had offered Apple an upfront payment of $100 million to take over its Card business. But now, JPMorgan Chase has reportedly emerged as the frontrunner. The bank already has a long-standing relationship with the tech titan through services like Apple Pay. It is also the largest credit card issuer in the US. Taking over the Apple Card would give it access to millions of iPhone users and help expand its presence in tech-driven consumer finance.
Currently, Goldman Sachs continues to manage the Apple Card, but both sides have signalled that the partnership is coming to an end. In January 2025, Goldman CEO David Solomon confirmed that the agreement, which was first planned to last until 2030, could conclude earlier.
