Apple Inc. (AAPL) just made a big call on who gets to handle its credit card business, and the answer is JPMorgan Chase (JPM). After years of partnership with Goldman Sachs (GS), Apple is handing over the Apple Card to the nation's largest bank in a deal that reshapes consumer finance ambitions across all three companies.

The Deal That Expands JPMorgan's Credit Card Empire

JPMorgan announced Wednesday that it reached an agreement with Apple to become the new issuer of the Apple Card. This isn't a small pickup—the deal brings more than $20 billion in Apple Card balances onto Chase's platform once everything's finalized.

For a bank that already dominates U.S. credit cards, this is another notch in the belt. The transaction still needs regulatory approvals and isn't expected to close for roughly two years, so don't expect your Apple Card to suddenly say "Chase" on it tomorrow.

One thing that won't change: Mastercard (MA) will continue serving as the payment network for the Apple Card.

Jamie Dimon Adds Another Win

This is exactly the kind of strategic move that defines Jamie Dimon's tenure at JPMorgan. The Apple Card deal further cements the bank's position in the brutally competitive U.S. credit card market, where scale and efficiency matter enormously.

Of course, taking on $20 billion in credit card balances comes with risks. JPMorgan said it expects to record a $2.2 billion provision for credit losses in the fourth quarter of 2025 related to the forward purchase commitment of the Apple Card loan portfolio. That's the price of entry when you're buying a massive book of consumer credit.

Goldman's Long Goodbye to Consumer Banking

For Goldman Sachs, this is another chapter in what's become a drawn-out retreat from consumer banking. Goldman and Apple first announced plans to end their partnership back in 2023, but these things take time to unwind.

The partnership launched in 2019 with high hopes—it was supposed to be central to Goldman's push beyond its traditional Wall Street business. The Apple Card offered no fees and cash-back rewards, features that customers loved but that apparently didn't translate into sustainable returns for Goldman.

The bank faced higher costs and regulatory scrutiny in consumer lending, and after years of losses, the strategic pullback became inevitable. Sometimes even Goldman Sachs discovers that consumer banking is harder than it looks.

The Financial Scorecard

Goldman's exit isn't entirely painful, at least not on paper. The transaction is expected to add about 46 cents per share to Goldman's fourth-quarter 2025 earnings, largely because the bank gets to release $2.48 billion in loan-loss reserves.

But that benefit gets partially offset by a $2.26 billion hit to net revenue tied to marking down the loan portfolio, contract termination costs, and $38 million in additional expenses. So it's a mixed bag—some gains, some losses, and ultimately an escape from a business that wasn't working.

JPMorgan Chase will kick off the banking sector's earnings season on January 13, followed by Goldman Sachs on January 15. Investors will be watching closely to see how both banks discuss this transition.

Price Action: Apple shares were down 0.0077% in after-hours trading, JPMorgan slipped 0.13%, and Goldman Sachs gained 0.083% during the same period.