The most ambitious consumer banking experiment on Wall Street has come to an end. JPMorgan Chase has reached an agreement to become the new issuer of Apple Card, taking over more than $20 billion in credit card loans from Goldman Sachs in a deal that will reshape the consumer finance landscape and put America's most popular tech company credit card in the hands of the nation's largest bank.

The Deal Details

The transaction, announced jointly by Apple, JPMorgan Chase, and Goldman Sachs, represents a comprehensive transfer of the Apple Card program. JPMorgan will acquire Goldman's entire Apple Card portfolio, including approximately $20 billion in outstanding card balances and the relationships with millions of cardholders.

Goldman Sachs is unloading the portfolio at a discount of more than $1 billion, according to The Wall Street Journal. The markdown reflects both the challenging economics of the card program and Goldman's eagerness to exit consumer banking entirely.

The Financial Impact

For JPMorgan, the acquisition comes with an immediate financial hit. The bank disclosed that it will book a $2.2 billion provision for credit losses when it reports fourth-quarter 2025 earnings, reflecting the higher-than-average delinquency rates among Apple Card holders.

For Goldman Sachs, the transaction provides a boost. The bank said the deal will add 46 cents per share to its earnings when it posts results, a welcome development as Goldman continues to streamline operations around its core strengths in investment banking and trading.

"This partnership brings together Apple's commitment to creating exceptional user experiences with Chase's scale and expertise in payments and consumer banking."

— Joint statement from Apple and JPMorgan Chase

What Changes for Cardholders

Apple and JPMorgan have emphasized that the core Apple Card experience will remain unchanged during and after the transition. Cardholders can expect:

  • Same rewards: Up to 3% unlimited Daily Cash back on every purchase
  • Same features: Easy-to-navigate spending tools and Apple Card Family
  • Same network: Mastercard will remain the payment network
  • Enhanced integration: Apple Wallet functionality will continue seamlessly

The Savings Account Question

One important detail for cardholders: alongside the Apple Card transfer, JPMorgan Chase will launch a new Apple savings account. However, existing users with Apple savings accounts at Goldman Sachs will not be automatically transitioned. These customers will need to decide whether to keep their funds at Goldman Sachs or open new accounts with Chase.

The transition is expected to take approximately 24 months to complete, giving both banks time to migrate account data and ensure service continuity for cardholders.

Goldman's Consumer Banking Retreat

The Apple Card transfer marks the final chapter in Goldman Sachs' ill-fated venture into consumer banking. What began as an ambitious attempt to diversify beyond Wall Street's traditional businesses has resulted in cumulative losses exceeding $6 billion.

The Apple partnership, which launched in 2019, was intended to be the flagship of Goldman's consumer strategy. Instead, it became a cautionary tale about the challenges of building consumer banking capabilities from scratch.

Why It Failed

Several factors contributed to the program's struggles:

  • High acquisition costs: Apple's premium customer base proved expensive to acquire and service
  • Subprime exposure: A higher-than-expected proportion of cardholders had subprime credit profiles
  • Delinquency rates: The portfolio's delinquency rate exceeded industry averages
  • Operational challenges: Goldman lacked the infrastructure for consumer-scale customer service

Goldman CEO David Solomon has acknowledged that the consumer banking push was a strategic misstep, and the bank has spent the past two years unwinding those investments.

Why JPMorgan Wants It

For JPMorgan Chase, the calculation is different. As America's largest bank by assets, Chase already operates consumer banking at massive scale. Adding the Apple Card portfolio represents incremental growth rather than a new line of business.

Chase's existing infrastructure can absorb Apple Card customers more efficiently than Goldman could serve them independently. The bank's card business already includes popular products like the Chase Sapphire Reserve and Freedom Unlimited, giving it deep expertise in rewards-based credit cards.

The Apple Relationship

Perhaps more valuable than the immediate loan portfolio is the long-term relationship with Apple. As one of the world's most valuable companies with a fiercely loyal customer base, Apple represents an ongoing partnership opportunity that could expand beyond credit cards into other financial services.

JPMorgan CEO Jamie Dimon has spoken frequently about the importance of technology partnerships in modern banking. The Apple Card acquisition puts Chase at the center of how millions of iPhone users interact with financial services.

The Broader Context

The transaction comes at an interesting moment for the credit card industry. Rising interest rates have increased both the profitability of card lending and the risks associated with consumer debt. Delinquency rates across the industry have been climbing, though they remain below historical crisis levels.

Industry Implications

The deal sends several signals to the broader market:

  • Scale matters: Consumer banking increasingly favors large, established players over new entrants
  • Tech partnerships are valuable: Access to technology company ecosystems justifies premium pricing
  • Goldman's retreat is final: The investment bank is returning to its Wall Street roots

What Comes Next

For cardholders, the transition should be largely seamless. Apple has stated that no action is required, and the familiar Apple Card experience will continue throughout the migration process.

For investors, the deal closes an uncertain chapter for Goldman Sachs while positioning JPMorgan Chase for continued growth in consumer payments. The $2.2 billion provision is a meaningful but manageable cost for a bank of Chase's size.

The Apple Card transfer is ultimately a story about specialization. Goldman Sachs learned that consumer banking requires different capabilities than investment banking. JPMorgan Chase, already excellent at consumer scale operations, is positioned to succeed where Goldman struggled. And Apple gets a partner with the resources and expertise to support its financial services ambitions for the long term.