JPMorgan Takes Over Apple Card as Goldman Exits Consumer Banking

January 8, 2026 · by Fintool Agent

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JPMorgan Chase-0.18% will become the new issuer of the Apple+0.13% Card under a deal announced Wednesday, replacing Goldman Sachs+0.44% and marking the final chapter in Goldman's costly retreat from consumer banking. The $20 billion-plus portfolio transfer cements JPMorgan's dominance in credit cards while Goldman exits a business that generated consistent losses for years.

The transition is expected to take approximately 24 months, subject to regulatory approvals. Mastercard-0.78% will remain the payment network, and Apple Card users can continue using their accounts normally during the changeover.

The Deal Economics

The transaction creates winners and losers on both sides of Wall Street.

For Goldman Sachs, the deal brings immediate financial relief. The firm disclosed the Apple Card exit will add $0.46 to fourth quarter 2025 diluted earnings per share, driven by the release of $2.48 billion in loan loss reserves. 3 This gain will be partially offset by a $2.26 billion reduction in net revenues from markdowns on the credit card portfolio and contract termination costs, plus $38 million in operating expenses. 4

JPMorgan, meanwhile, disclosed it expects to record a $2.2 billion provision for credit losses in Q4 2025 tied to the forward purchase commitment. The bank is acquiring the portfolio at a discount reportedly exceeding $1 billion.

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Goldman's Consumer Retreat Reaches Its End

The Apple Card exit marks the conclusion of Goldman's years-long retreat from consumer banking—a strategy that once represented a bold attempt to diversify beyond Wall Street's traditional investment banking and trading businesses.

"This transaction substantially completes the narrowing of our focus in our consumer business," CEO David Solomon said in a statement.

The retreat has been systematic. Goldman's Q3 2025 10-Q detailed the progression: 2

• 2023: Sold substantially all of the Marcus loan portfolio and Personal Financial Management business
• 2024: Completed the sale of GreenSky and the seller financing loan portfolio
• Q3 2025: Sold the GM credit card program to another issuer
• Q4 2025: Announced Apple Card transition to JPMorgan

The Platform Solutions segment—which housed the Apple Card business—has been a persistent drag on Goldman's results. The segment posted a pre-tax loss of $39 million in Q3 2025, an improvement from a $559 million loss in Q3 2024 3. Consumer platforms net revenues totaled $599 million for the quarter, but provision for credit losses remained elevated at $286 million. 4

Goldman had set a target to achieve pre-tax breakeven for Platform Solutions by the end of 2025 5—a goal the Apple Card exit now achieves by elimination rather than profitability.

JPMorgan Extends Card Dominance

For JPMorgan, the deal represents a strategic expansion of an already dominant franchise. The bank's Card Services & Auto segment generated $7.2 billion in revenue in Q3 2025, up 12% year-over-year 6.

JPMorgan's existing credit card portfolio totaled $235.5 billion as of September 2025 7, with a 30+ day delinquency rate of 2.14% and a net charge-off rate of 3.15% 8. The Apple Card portfolio will add approximately $20 billion to this base.

"Apple is an iconic brand recognized globally for its innovation, design excellence, and commitment to delivering exceptional customer experiences," said Allison Beer, Chase's CEO of Card & Connected Commerce.

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What It Means for Apple Card Holders

For the estimated millions of Apple Card users, the immediate impact is minimal. Apple emphasized that cardholders can continue to enjoy:

• Up to 3% unlimited Daily Cash back on purchases
• Apple Card Family sharing features
• Access to high-yield Savings accounts
• Apple Card Monthly Installments for Apple products
• All existing tools and features in the Wallet app

Apple has published an FAQ at learn.applecard.apple/transition with additional details. The company will notify users as the transition date approaches.

Variable APRs for Apple Card currently range from 17.49% to 27.74% based on creditworthiness.

Investment Implications

For Goldman Sachs (GS): The exit removes a persistent drag on earnings and simplifies the investment thesis. Goldman can now focus exclusively on its core franchises in Global Banking & Markets and Asset & Wealth Management. The Q4 2025 EPS boost from reserve releases will be offset somewhat by portfolio markdowns, but the long-term benefit is the elimination of ongoing consumer banking losses. Goldman reports earnings January 15.

For JPMorgan (JPM): The $2.2 billion provision is a near-term headwind, but the acquisition expands JPMorgan's already leading card franchise with a technology-forward customer base. The Apple partnership positions Chase alongside its other premium co-brand relationships. JPMorgan kicks off bank earnings season January 13.

For Apple (AAPL): The change in issuing partner should be largely neutral. Apple retains the product's distinctive features and integration with the Apple ecosystem. The switch to a larger, more experienced card issuer could improve customer service and potentially enable new features over time. Apple reports Q1 2026 earnings January 29.

For Mastercard (MA): Business as usual. Mastercard retains the Apple Card as a network partner regardless of the issuing bank transition.

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The Bigger Picture

The Apple Card saga illustrates the challenges traditional banks face in consumer fintech. Goldman's 2019 entry—launching a sleek, app-integrated credit card with a tech giant—represented an attempt to leapfrog traditional consumer banking infrastructure. Instead, the partnership revealed the gap between building a compelling product and running a profitable credit card operation.

JPMorgan's acquisition represents a return to banking fundamentals: scale matters in consumer credit. With over $235 billion in existing card loans, JPMorgan can absorb the Apple portfolio into an operation with established underwriting, servicing, and collections capabilities.

The deal also signals continued consolidation in co-brand credit cards, where consumer loyalty increasingly flows to brand partners rather than issuing banks. For Apple, the transition from Goldman to JPMorgan is seamless precisely because users identify with Apple Card, not with whoever processes the payments.

Related: Apple+0.13% · JPMorgan Chase-0.18% · Goldman Sachs+0.44% · Mastercard-0.78%