JPMorgan Chase to Assume Apple Card Issuance from Goldman Sachs
In a significant development within the financial services sector, JPMorgan Chase has finalized an agreement to become the new issuer of the Apple Card, succeeding Goldman Sachs. This transition is slated to occur over the next 24 months, pending regulatory approvals. During this period, Apple Card users will continue to utilize their cards without interruption, with Mastercard remaining as the payment network.
Background and Transition Details
Launched in 2019, the Apple Card was initially issued by Goldman Sachs as part of its venture into consumer banking. Despite the card’s popularity among Apple customers, Goldman Sachs faced substantial financial challenges, reporting a loss of $1.2 billion in 2022 related to the Apple Card. Additionally, the bank’s platform solutions unit, which managed the Apple Card, posted an $859 million net loss in 2024. These financial strains, coupled with regulatory scrutiny from the Consumer Financial Protection Bureau (CFPB) over billing errors and compliance issues, prompted Goldman Sachs to seek an early exit from the partnership.
In contrast, JPMorgan Chase, the largest credit card issuer in the United States, has been expanding its consumer banking services. The bank’s interest in taking over the Apple Card aligns with its strategic goals to enhance its presence in the co-branded credit card market. Reports indicate that JPMorgan Chase will acquire approximately $20 billion in outstanding Apple Card balances at a discount exceeding $1 billion, reflecting the challenges associated with the portfolio’s higher-than-average delinquency rates and exposure to subprime borrowers.
Implications for Apple Card Users
Apple has assured users that the core features and benefits of the Apple Card will remain intact throughout and after the transition. Cardholders can continue to enjoy up to 3% unlimited Daily Cash back on purchases, user-friendly spending tools, Apple Card Family sharing, and access to a high-yield Savings account. The Apple Card Monthly Installments (ACMI) program, which allows customers to finance Apple products interest-free, will also continue to be available.
Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet, expressed confidence in the new partnership, stating, Chase shares our commitment to innovation and delivering products and services that enhance consumers’ lives. We look forward to working together to continue to provide a best-in-class experience and exceptional customer service with Apple Card.
Future Outlook
The transition to JPMorgan Chase is expected to be completed by early 2028. During this period, both Apple and JPMorgan Chase will work closely to ensure a seamless experience for Apple Card users. The partnership is anticipated to bring enhanced financial services and innovations to the Apple Card platform, leveraging JPMorgan Chase’s extensive experience in consumer banking.
This strategic move underscores the evolving landscape of co-branded credit card partnerships and highlights the importance of aligning financial products with institutions that can effectively manage and support them. As the transition progresses, Apple Card users can expect continued communication and support to address any questions or concerns that may arise.
