Goldman Retreats as JPMorgan Steps In
JPMorgan Chase is close to securing a major deal to assume control of the Apple Card from Goldman Sachs, according to sources familiar with the discussions. The move would further solidify JPMorgan’s dominance in the U.S. credit card market and allow Apple to transition the card to a more experienced issuer.
Talks between JPMorgan and Apple have advanced significantly in recent weeks, while other contenders such as American Express, Synchrony, and Barclays have reportedly exited the race. If finalized, the agreement would hand JPMorgan control of a multibillion-dollar loan portfolio and one of the most high-profile co-branded credit cards in the U.S.
Goldman’s Consumer Retreat
Goldman Sachs initially entered the consumer finance arena in 2019 with a splash by winning the Apple Card account. However, the bank struggled with rapid growth, operational demands, and regulatory scrutiny, particularly around billing and customer service practices. The credit card business, once touted as a key expansion strategy, became a burden amid rising reserves and recession concerns.
CEO David Solomon has faced internal pressure over the underperforming consumer division. Goldman held $20.5 billion in credit card loans as of March, including the Apple Card portfolio. The bank is also in the process of transferring its General Motors card business to Barclays, signaling a broader retreat from consumer lending.
JPMorgan Aims for Stability and Scale
For Apple, a partnership with JPMorgan promises more operational stability and long-term scalability. JPMorgan is already the largest credit card issuer in the country by purchase volume, operating a robust portfolio of branded and co-branded cards. Sources suggest the bank is negotiating service-level conditions and operational concessions before finalizing any agreement.
While JPMorgan has not yet commented publicly, insiders indicate that the bank’s disciplined approach contrasts with Goldman’s aggressive entry into the space. Apple, seeking a reliable long-term partner, appears open to renegotiating terms that align with JPMorgan’s risk tolerance and compliance standards.
Implications for the Market
The potential handoff could reshape the competitive landscape of digital finance partnerships. The Apple Card, with its sleek interface and Apple Pay integration, has become a case study in tech-finance collaboration. With JPMorgan’s deep experience and infrastructure, the card could now move into a more mature growth phase, better aligned with Apple’s long-term goals.
If completed, the deal will mark the end of a turbulent chapter for Goldman and the beginning of a new strategic era for Apple’s financial services ambitions under JPMorgan’s stewardship.
