- Goldman Sachs is exiting the Apple Card, transferring about $20 billion of balances to JPMorgan Chase in a deal expected to take roughly two years and require regulatory approval.
- The Apple partnership delivered weak returns for Goldman, driven by subprime exposure, elevated delinquencies, and regulatory fallout including nearly $90 million in CFPB penalties.
- JPMorgan is buying the portfolio at a discount with protective terms and has built a $2.2 billion loss provision to absorb potential credit deterioration.
- The switch positions Apple with a larger card issuer while shifting credit and operational risk to JPMorgan and cementing Goldman’s retreat from consumer banking.
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The Apple-Goldman Sachs partnership, launched in 2019, was notable for its consumer-friendly terms: no late fees, no foreign transaction fees, and relaxed approval requirements, resulting in high exposure to subprime borrowers. Goldman extended its contract with Apple through 2030, but as early as 2025 CEO David Solomon signaled the partnership could conclude early due to weak returns, especially after the program dragged down Goldman’s return on equity.
Negotiations between Apple and JPMorgan to take over the program began in 2024, amid Goldman’s growing losses and consumer banking retreat. JPMorgan agreed to purchase the program’s credit‐card portfolio—including its risks—at a steep discount, secured protections against further loan deterioration, and prepared $2.2 billion in credit loss reserves. The deal, announced in early January 2026, is subject to regulatory approval and is expected to take around 24 months to complete.
For Apple, the transition shifts risk and operational burden to a bank with large scale in consumer credit, possibly enabling more aggressive innovation or adjustments. For JPMorgan, it’s an opportunity to grow its credit business and deepen ties to Apple’s customer base, but also introduces elevated risk through higher delinquency and subprime exposure, and large provisions. For Goldman Sachs, the deal marks a full exit from a consumer banking venture that consistently underperformed, aligning with its pivot back toward investment banking and wealth management.
Regulatory and reputational consequences are also material. Apple and Goldman were fined nearly $90 million by the CFPB for mishandling transaction disputes and misleading customers about interest-free installment plans, issues that likely compounded pressure on both firms. Any new issuer (JPMorgan) will need to manage these legacies.
Open questions remain: how will JPMorgan balance maintaining Apple’s customer terms with mitigating loss risk? Will Apple modify product generosity (fees, approval standards) under the new issuer? How will technology, dispute handling, and product innovation evolve to spell out Apple’s financial services identity independent of Goldman? Also, what regulatory scrutiny or constraints may accompany JPMorgan’s increased exposure?
Supporting Notes
- The agreement transfers approximately $20 billion in card balances from Goldman to JPMorgan.
- Goldman is exiting its consumer finance segment, saying the Apple Card reduced its return on equity by 75-100 basis points in the previous year.
- JPMorgan set aside $2.2 billion in Q4 2025 for credit losses tied to the portfolio acquisition.
- Goldman expects a $0.46 per share earnings boost in Q4 2025 from released reserves; this is offset by $2.26 billion in reduced net revenues and $38 million in costs to unwind the portfolio and terminate contracts.
- Apple Card has had elevated exposure to subprime borrowers and above-average delinquency rates, contributing to losses and making other banks wary of taking it over without compensation and protective clauses.
- Regulatory penalties from the CFPB: combined fines of nearly $90 million for Apple and Goldman over dispute handling and misleading marketing, including obligations for customer redress.