Goldman Sachs Exits Apple Card as JPMorgan Takes Over $20B Portfolio

Goldman Sachs is exiting its flagship consumer credit card partnership with Apple, offloading approximately $20 billion in outstanding Apple Card balances at a discount exceeding $1 billion. The transaction, reported by The Wall Street Journal, follows more than a year of complex negotiations involving Apple, Goldman Sachs, and JPMorgan Chase, which is set to assume the portfolio.

Despite the sale, Goldman will continue to service the Apple Card business during a 24-month transition period, ensuring continuity for customers as JPMorgan integrates the portfolio into its card operations.

Originally launched in August 2019, the Apple Card was positioned as a consumer-friendly alternative in credit cards, emphasizing no fees, greater transparency, and deep integration with Apple’s ecosystem. However, the partnership became emblematic of Goldman Sachs’ broader—and ultimately costly—push into consumer banking.

JPMorgan executives framed the acquisition as a strategic fit. Allison Beer, CEO of Card & Connected Commerce at JPMorgan Chase, highlighted Apple’s global brand strength and customer experience focus, while Apple Pay and Apple Wallet VP Jennifer Bailey emphasized Chase’s innovation capabilities and commitment to customer service.

Analysts largely view the deal as favorable for JPMorgan. Truist Securities noted the acquisition makes effective use of JPMorgan’s excess capital and provides access to millions of new customers for cross-selling. Piper Sandler analysts added that the $20 billion portfolio represents just 1.4% of JPMorgan’s total loan book, making it financially modest but strategically significant. Others pointed out JPMorgan’s superior scale, technology, and credit card expertise compared to Goldman.

For Goldman Sachs, the deal marks another step in retreating from consumer finance. Wells Fargo analysts were blunt, describing the Apple Card venture as a “disastrous” expansion that should never have happened. The divestment follows Goldman’s sale of the GM credit card business to Barclays in 2024, its Marcus Invest unit to Betterment, and fintech lender GreenSky in 2023.

“This transaction substantially completes the narrowing of our focus in our consumer business,” Goldman Sachs CEO David Solomon said, signaling a return to the firm’s traditional strengths.

Source: Payments Dive