Apple has officially announced that JPMorgan Chase will become the new issuer of the Apple Card, replacing Goldman Sachs. This transition is expected to take up to 24 months, with no immediate changes for consumers, including those applying for new cards. The Apple Card will continue to operate on the Mastercard network, ensuring a seamless experience for users during this transition period.
The deal is significant for JPMorgan Chase, which anticipates gaining over $20 billion in card balances. Meanwhile, Goldman Sachs is offloading this substantial amount at a discount of approximately $1 billion. In response to this change, Goldman Sachs has indicated a projected $2.2 billion provision for credit losses related to the forward purchase commitment for the fourth quarter of 2025.
Background of the Apple Card Partnership
The news of the Apple-Goldman partnership concluding has been circulating for several years. Last year, the Wall Street Journal reported that JPMorgan was positioned to take over as Apple’s banking partner. The Apple Card, launched in 2019, was initially introduced in collaboration with Goldman Sachs, featuring no late fees or penalty interest rates. It offers consumers up to 3% daily cashback on purchases made from Apple and select partners, 2% cashback when using Apple Pay, and 1% cashback for transactions made using the physical card.
This strategic shift underscores Apple’s ongoing efforts to refine its financial services and strengthen its consumer offerings. By partnering with JPMorgan Chase, one of the largest financial institutions in the United States, Apple aims to enhance the overall experience for Apple Card users.
As the transition unfolds, both companies will work to ensure a smooth handover, prioritizing customer satisfaction and maintaining the high standards that Apple Card holders have come to expect.
