JPMorgan Acquires Apple Card from Goldman Sachs in $20 Billion Deal

JPMorgan Chase has agreed to acquire Apple’s credit card portfolio from Goldman Sachs in a deal valued at approximately $20 billion, marking a major shift in one of the most high-profile partnerships between Wall Street and Big Tech.

The transaction follows more than a year of negotiations and is expected to take up to two years to complete, according to people familiar with the matter.

Goldman Sachs Chief Executive David Solomon said the deal reflects the bank’s strategy to narrow its focus on core consumer banking activities. The sale is expected to boost Goldman’s fourth-quarter earnings by freeing up $2.48 billion in loss reserves, adding an estimated 46 cents per share.

That benefit will be partially offset by a $2.26 billion decline in net revenue related to portfolio markdowns and contract termination costs, as well as $38 million in additional expenses, Goldman said.

The transaction formally ends the partnership between Apple and Goldman Sachs, which was launched in 2019 with the debut of the Apple Card. While the card gained popularity for features such as zero fees and cash-back rewards, Goldman struggled to make its consumer banking push profitable.

In 2023, Apple and Goldman announced plans to unwind their alliance, with talks between Apple and JPMorgan beginning in 2024.

Under the agreement, JPMorgan will acquire the portfolio at a discount of roughly $1 billion to its face value. Apple Card customers will continue to enjoy existing benefits, including access to the Mastercard network, cash-back rewards, and digital spending-management tools.

JPMorgan and Apple also announced plans to collaborate on the launch of a new Apple-branded savings account, further deepening their financial services relationship.

Alison Beer, head of card services at JPMorgan, said the bank is eager to leverage Apple’s innovation capabilities, while Jennifer Bailey, Apple’s vice president of payments, said the partnership with JPMorgan will ensure consumers continue to receive a best-in-class experience, according to the Financial Times.

The deal strengthens JPMorgan’s ties with one of the world’s largest technology companies, while reinforcing Apple’s broader push into financial services, including payments, digital wallets, and lending, under the leadership of Chief Executive Tim Cook.

For Goldman Sachs, the sale represents another step back from consumer finance. The bank entered the Apple Card business in 2019 but later struggled with rising costs and regulatory scrutiny. Solomon has since moved to refocus Goldman on its traditional strengths, including investment banking and asset management.

As part of that retreat, Goldman transferred other credit card partnerships, such as General Motors’ card business, to Barclays in 2024, underscoring its broader exit from large-scale consumer lending.