Apple Card’s Transition to Chase: What Users Need to Know
In a significant development for Apple Card holders, Apple has announced that JPMorgan Chase will become the new issuer of the Apple Card, replacing Goldman Sachs. This transition is expected to take place over the next 24 months, with completion anticipated by early 2028. During this period, users can continue to use their Apple Cards as usual, with no immediate changes to their accounts or benefits.
Background on the Transition
Goldman Sachs, the current issuer of the Apple Card, has faced substantial financial challenges with the partnership. Since the card’s launch in 2019, Goldman Sachs has reportedly incurred losses exceeding $1 billion. These losses are attributed to higher-than-expected default rates and the card’s consumer-friendly features, such as no fees, which limited revenue generation. In response, Goldman Sachs has been seeking to exit the consumer finance sector, leading to discussions with various financial institutions about transferring the Apple Card partnership. Ultimately, a deal was reached with JPMorgan Chase.
Details of the Transition
The transition from Goldman Sachs to Chase is set to occur over approximately 24 months. During this period, Apple Card users are not required to take any action. They can continue to enjoy existing benefits, including up to 3% unlimited Daily Cash back on purchases, access to a high-yield Savings account, and the use of Apple Card Family features. Mastercard will remain the payment network for the Apple Card, ensuring continued global acceptance and benefits.
Impact on Users
For Apple Card holders, the transition is designed to be seamless. Key points include:
– No Reapplication Needed: Existing users will not need to reapply for the Apple Card.
– Unchanged Benefits: Features such as Daily Cash rewards, spending tools, and the high-yield Savings account will remain available.
– Continued Use of Physical Cards: The current physical Apple Cards will continue to function as usual.
– Management via Wallet App: Users can still manage their Apple Card through the Wallet app on their iPhones.
– No Fee Structure Changes: The Apple Card will maintain its no annual fee, no late fees, and no foreign transaction fees policy.
Once the transition is complete, Chase will be listed as the issuing bank on users’ credit reports. Apple has committed to providing additional details as the transition date approaches to ensure users are well-informed.
Statements from Apple and Chase
Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet, expressed pride in how the Apple Card has transformed the credit card experience by offering innovative tools that empower users to make healthier financial decisions. She highlighted Chase’s shared commitment to innovation and enhancing consumers’ lives.
Allison Beer, Chase’s chief executive officer of Card & Connected Commerce, emphasized the shared commitment to supporting consumer financial health and expressed excitement about deepening the relationship with Apple through this partnership.
Conclusion
The transition of the Apple Card’s issuance from Goldman Sachs to JPMorgan Chase marks a significant shift in the financial landscape of Apple’s credit offerings. However, Apple Card users can rest assured that their experience will remain consistent during the transition period. Apple and Chase are working closely to ensure a smooth and secure transition, with a continued focus on providing exceptional customer service and innovative financial tools.
