Goldman Sachs May End Apple Card Deal Early, Talks with JPMorgan Begin

Goldman Sachs’ collaboration with Apple on the Apple Card could wrap up sooner than expected, even though the current agreement is set to last until 2030. Speaking on an earnings call, Goldman CEO David Solomon hinted at the possibility of an early conclusion.

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"We have a contract with Apple to run that partnership until 2030, although there's some possibility that it won't continue until that time frame," Solomon said.

The Apple Card, introduced in 2019, was Goldman Sachs' ambitious entry into consumer banking. Despite its innovative integration with Apple’s ecosystem, the venture has posed significant financial challenges. Solomon disclosed that the Apple Card reduced Goldman’s return on equity by 0.75% to 1% last year. However, he expressed optimism that the financial outlook could improve by 2025 or 2026.

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This partnership is managed by Goldman’s platform solutions division, which focuses on consumer-oriented products. However, the division reported a loss of $859 million in 2024, underlining the strain caused by the Apple Card and other consumer ventures.

Apple in Talks with JPMorgan Chase

Reports suggest that Apple may already be planning for a new chapter. Sources indicate that Apple is in discussions with JPMorgan Chase to take over as its credit card partner. Such a transition could provide Apple with the opportunity to partner with a more established and experienced consumer banking institution, potentially boosting the Apple Card’s growth and stability.

Possible Outcomes for Goldman Sachs and Apple

If Goldman Sachs ends the partnership early, it might mark a strategic retreat from consumer banking, an area where the firm has faced numerous hurdles. Goldman has already scaled back other consumer initiatives, such as its Marcus savings platform, signaling a shift in focus back to its core strengths like investment banking and wealth management.

For Apple, transitioning to a new partner like JPMorgan Chase could pave the way for improving the Apple Card’s offerings and reaching a broader customer base. Aligning with a banking leader might also provide Apple with the expertise and infrastructure needed to enhance its financial services portfolio.

Also Read: Apple Card News Update: Apple's Departure from Goldman Sachs in Credit Card Venture