Apple announced on March 13, 2024, that JPMorgan Chase will replace Goldman Sachs as the issuer of the Apple Card. This transition is expected to take up to 24 months, during which time the card will continue to operate on the Mastercard network for payments. For existing cardholders and those applying for new cards, there will be no immediate changes.
The deal is significant for JPMorgan Chase, which anticipates acquiring over $20 billion in card balances as a result of this partnership. In contrast, reports from the Wall Street Journal indicate that Goldman Sachs is offloading this business at a discount of approximately $1 billion. In light of this transition, Goldman Sachs has projected a $2.2 billion provision for credit losses related to this forward purchase commitment for the fourth quarter of 2025.
The anticipated shift away from Goldman Sachs has been a topic of speculation for some time. Reports dating back to last year suggested that JPMorgan Chase was poised to become Apple’s new banking partner. The Apple Card, which was launched in 2019, was initially developed in collaboration with Goldman Sachs and offers unique features such as no late fees or penalty interest rates. It provides up to 3% daily cashback on purchases from Apple and select partners, 2% with Apple Pay, and 1% with the physical card.
The collaboration between Apple and JPMorgan Chase marks a new chapter in the Apple Card’s evolution. While the full impact of this transition will unfold over the coming months, consumers can expect a seamless experience as the shift takes place.
