JPMorgan Chase will assume full responsibility for the Apple Card program, concluding a high-profile venture that faced repeated scrutiny and underperformance. The transition marks a strategic retreat for Goldman Sachs from consumer credit innovation.
- Goldman Sachs will transfer Apple Card program to JPMorgan Chase by Q2 2026
- Outstanding Apple Card balances declined from $1.8B (2023) to $1.3B (2025)
- New card issuances dropped 42% YoY in 2024 due to operational and regulatory issues
- JPMorgan Chase has $32B in annual card revenue and extensive credit infrastructure
- Apple Card peak users reached 6.5 million; target is 12 million under new management
- Goldman Sachs exited consumer lending as a strategic focus after contributing <3% revenue since 2021
Goldman Sachs has finalized an agreement to transfer the Apple Card program to JPMorgan Chase, ending a three-year effort that failed to meet expectations despite initial fanfare. The decision follows sustained regulatory pressure, customer complaints over credit limits and interest rate disparities, and underwhelming loan growth. Goldman Sachs had originated the credit lines since the card’s 2019 launch, but the program never achieved scale, with outstanding balances peaking at approximately $1.8 billion in 2023 before declining to $1.3 billion by late 2025. The Apple Card, marketed as a premium digital-first credit product with no annual fees and cash-back rewards, struggled with operational inefficiencies and inconsistent user experiences. Internal assessments revealed that only 18% of applicants received the maximum credit limit, and disparities in approval rates across demographic groups led to findings from federal regulators. These issues prompted multiple investigations and contributed to a 42% drop in new card issuances year-over-year in 2024. Under the new arrangement, JPMorgan will assume all servicing, credit risk, and customer support responsibilities effective Q2 2026. The move allows Goldman Sachs to exit a capital-intensive consumer lending segment that had contributed less than 3% to its total revenue since 2021. The transition will also enable Apple to maintain its branded card experience while shifting operational control to a bank with deeper credit infrastructure and regulatory expertise. The shift signals broader strategic recalibration within investment banks seeking to focus on core markets. JPMorgan, with its seasoned credit card portfolio and $32 billion in annual card revenue, is well-positioned to absorb the program and scale it. Analysts estimate that the Apple Card could reach 12 million active users within three years under the new management, a significant improvement over the previous 6.5 million peak.