Source: Coindoo Original Title: Apple Swaps Goldman for JPMorgan on Credit Card Deal Original Link:

Apple Swaps Goldman for JPMorgan on Credit Card Deal

Apple is reworking the financial engine behind its credit card, turning to the largest U.S. bank by assets and quietly ending a partnership that never lived up to its promise.

The shift places JPMorgan Chase & Co. at the center of Apple’s card strategy and draws a clear line under Goldman Sachs Group Inc.'s bruising experiment in consumer finance.

Key Takeaways

• Apple is replacing Goldman Sachs with JPMorgan as the issuer of its credit card.
• The move marks Goldman’s exit from a loss-making consumer banking push.
• JPMorgan gains a large, Apple-linked card portfolio and deeper reach into digital payments.

Rather than a sudden switch, the handover will unfold over roughly two years, allowing Apple Card customers to transition without disruption. Behind the scenes, however, the change represents a decisive reset for all parties involved.

Apple Chooses Scale Over Experimentation

From Apple’s perspective, the decision reflects a preference for stability and scale. The Apple Card has become a core feature of the company’s broader payments ecosystem, tightly integrated with the iPhone and Apple Pay. Managing a product of that size requires a partner with deep consumer-banking infrastructure and experience handling massive card portfolios – an area where JPMorgan excels.

The card will continue to operate on the Mastercard Inc. network, ensuring that users see little difference on the surface. But operationally, JPMorgan’s takeover is expected to bring more resilience behind the scenes, particularly as Apple continues to push deeper into everyday financial services.

Goldman Walks Away From a Costly Detour

For Goldman, the exit is less about Apple and more about strategic clarity. The bank’s push into consumer lending was meant to diversify earnings beyond its Wall Street roots. Instead, it became a drag on profitability and morale. Since 2020, the consumer business has racked up billions of dollars in losses, prompting mounting pressure from investors to pull back.

The Apple Card transfer allows Goldman to unwind that exposure. The bank will release substantial loan-loss reserves while absorbing writedowns tied to the card portfolio and contractual exits. In practical terms, it is paying a price to refocus on what it does best: investment banking, markets, and asset management.

What JPMorgan Is Getting

JPMorgan is expected to take on a card portfolio with roughly $20 billion in outstanding balances, acquired at a significant discount. For a bank of its size, the deal is less about short-term profit and more about reinforcing dominance in U.S. consumer payments.

The Apple Card brings a tech-savvy user base and a product already embedded in millions of digital wallets. Combined with JPMorgan’s existing card operations, it strengthens the bank’s grip on a payments market that continues to migrate toward mobile-first experiences.

A Broader Message for Big Banks

The reshuffle sends a broader signal across Wall Street. Consumer banking is not simply an extension of investment banking – it is a fundamentally different business that rewards scale, patience, and operational muscle. Goldman’s retreat underscores how hard that transition can be, even with a marquee partner like Apple.

For Apple and JPMorgan, the new alliance is about execution, not experimentation. For Goldman, it is a reminder that not every strategic pivot pays off. And for the banking industry as a whole, the Apple Card saga has become a case study in where ambition meets reality.