- Apple and Goldman Sachs’ Apple Card partnership is unwinding, with JPMorgan Chase set to take over about $20 billion of card and savings balances over roughly two years while keeping Mastercard as the network.
- The breakup follows heavy losses and friction over Apple’s consumer-friendly features that left Goldman bearing outsized credit risk and profitability drag.
- Regulatory and reputational damage intensified after the CFPB fined Apple and Goldman more than $89 million in 2024 for dispute-handling and misleading “interest-free” financing issues.
- The deal cements JPMorgan’s strength in U.S. consumer credit as Goldman exits retail ambitions and Apple shifts banking risk and compliance burden to its new partner.
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The Apple-Goldman Sachs credit partnership dates to 2019, combining Apple’s customer experience with Goldman’s foray into consumer finance via the Apple Card and Apple Savings products. Under their agreement, Goldman handled underwriting, funding, and credit risk, while Apple controlled branding, user interface, and cardholder features.
However, over time the partnership created tensions. Apple pushed for generous consumer-friendly features—high approval rates, no late fees, device installment programs with interest-free promises—but these exposed Goldman to higher default rates and loan losses. Cumulatively, the consumer banking unit incurred substantial losses; for example, in 2024 Goldman’s “Platform Solutions” reported an $859 million loss, and the Apple Card venture dragged its equity returns by 75-100 basis points.
Regulatory scrutiny added pressure. In October 2024, the CFPB fined both Apple and Goldman a combined $89+ million for mishandling dispute processes, misleading marketing around interest-free Apple device financing, incorrectly applying refunds, and reporting inaccurate credit history figures. These failures affected hundreds of thousands of customers.
Negotiations between Apple, Goldman Sachs, and potential acquirers reportedly stretched over years. A deal with JPMorgan Chase was reached in early 2026: JPMorgan will assume existing card balances with a discount of more than $1 billion, setting aside $2.2 billion in provisions for expected credit losses. The transition, completed over roughly 24 months, includes Apple‒branded savings accounts and ensures Mastercard remains the payment network.
Strategic implications are significant. For Goldman Sachs, this marks a definitive retreat from its ambitious consumer banking plans, refocusing on investment banking, trading, and institutional services. Apple retains its product innovations and consumer access but shifts risk and regulatory exposure to JPMorgan. For JPMorgan, acquiring this portfolio accelerates expansion in retail credit and enhances its position as the largest U.S. credit card issuer. For consumers, continuity of benefits is being promised, though the transfer introduces uncertainty over terms and customer service during transition.
Open questions remain: how will JPMorgan manage credit risk in the acquired portfolio, especially as economic conditions could worsen? How will Apple negotiate future financial-experience trade-offs—balancing user-friendly policies with profitability? And what regulatory oversight and compliance structure will be implemented to avoid the mistakes past seen with Apple-Goldman collaboration? Also, what will be the impact on margins for Mastercard and Apple as underlying partners shift?
Supporting Notes
- Apple and Goldman Sachs expanded their partnership in 2019 by launching both Apple Card and Apple Savings; Goldman handled backend banking functions while Apple managed features and branding.
- CFPB fined the two companies over $89 million in late 2024: $45 million penalty for Goldman, $25 million for Apple, plus redress of about $19.8 million.
- Violations cited: Apple failing to send tens of thousands of consumer disputes to Goldman; Goldman failing to properly investigate or respond to acknowledged disputes in required legal timeframes.
- Misleading marketing over the “interest-free” Apple device payment plan—many customers unknowingly charged interest and faced confusing enrollment and refund misallocations.
- Goldman’s consumer credit business (Platform Solutions unit) suffered major losses—$859 million net loss in 2024—and Apple Card was noted to drag Goldman’s return on equity by 75-100 basis points.
- Deal specifics: JPMorgan will assume roughly $20 billion of card balances; the acquisition includes a discount exceeding $1 billion for Goldman; JPMorgan will record $2.2 billion in credit loss provisions in Q4 2025.
- The transition is expected to last about two years; Mastercard remains the payment network.