Apple Nears Credit Card Deal with JPMorgan

July 30, 2025 • FinTech News
Apple Nears Credit Card Deal with JPMorgan

A Major Banking Partnership Shift

Apple is finalizing a deal to transition its Apple Card business from Goldman Sachs to JPMorgan Chase. After months of negotiations, the two financial giants are working through final terms, with JPMorgan seeking key operational changes to the credit card program.

Why Goldman is Exiting

The Apple Card launched in 2019 as a marquee partnership for Goldman’s consumer banking push. However, the venture proved problematic:
✅ $1B+ in losses from Apple Card and other retail products
✅ Higher-than-expected defaults weighing on the portfolio
✅ Strategic retreat from consumer banking announced in 2023

Goldman’s exit left Apple needing a new partner for its $17B loan portfolio – one willing to absorb the riskier credit profile.

JPMorgan’s Conditions for the Deal

The banking giant is negotiating several changes:

  • Eliminating calendar-based billing (which causes monthly service spikes)

  • Implementing staggered due dates to smooth operations

  • Risk-sharing terms for the existing loan book

Reports suggest JPMorgan balked at taking over the portfolio at full value due to:
✔ Rising US credit card delinquencies
✔ Economic uncertainty
✔ Apple Card’s unique (but costly) features

Competitive Landscape

Other potential issuers like Barclays and Synchrony have dropped out of contention. Meanwhile:

  • Visa offered Apple $100M to switch from Mastercard

  • Amex was briefly considered but passed

What This Means for Apple Card Users

While terms are still being finalized, customers may see:
🔹 New billing cycles replacing the 1st-of-month system
🔹 Possible changes to rewards structure
🔹 JPMorgan’s customer service approach

Bigger Implications

This transition represents:

  1. A win for JPMorgan in premium card partnerships

  2. Stability for Apple’s financial services roadmap

  3. Validation of card’s value despite Goldman’s struggles

The deal could close by early 2025, marking a new chapter for one of tech’s most watched financial products.