In a significant shift within the financial technology landscape, Apple has announced a major change in the banking partnership for its popular Apple Card. The tech giant confirmed that the card will now be issued by banking behemoth JPMorgan Chase, taking over from Goldman Sachs. The transition is expected to be seamless for the millions of cardholders, with Apple assuring that all popular features and benefits will remain intact.
What Stays the Same for Apple Card Users?
Apple has moved quickly to reassure its customers that the core experience of using the Apple Card will not change. The company stated that all intuitive features and consumer perks will continue as before. This includes the popular 3% cash back on purchases made directly with Apple and at select merchants. Furthermore, the high-yield savings account linked to the card will also remain operational and unaffected by this backend shift in issuing banks.
Apple emphasized that cards can be used as normal throughout the transition period. The foundational payment network is not changing either. Mastercard will continue to serve as the payment network for the Apple Card, ensuring users retain access to Mastercard's vast global acceptance and its suite of benefits. The unique design of the titanium card—featuring no visible number on the front and the user's name etched in metal—also remains a signature element.
Why the Change? The Strategic Handover
The Apple Card was originally launched in 2019 in partnership with Goldman Sachs. It was designed as a key component to expand Apple's digital Apple Pay services, seamlessly marrying a physical titanium card with a virtual one, all tightly integrated into the iPhone ecosystem. However, Goldman Sachs has been in talks for some time to exit the consumer credit card business, leading to this strategic handover.
The move brings together two giants in their respective fields. Apple plays a dominant role in how people use devices like phones, tablets, and watches to pay for everything, while JPMorgan is a powerhouse in consumer banking. This partnership solidifies JPMorgan's dominance in the credit card sector. According to The Nilson Report, JPMorgan was the top U.S. credit card issuer in 2024 for the sixth consecutive year, based on a staggering purchase volume exceeding $1.344 trillion.
Financial Implications and the Road Ahead
The financial stakes of this transition are substantial. JPMorgan stated that taking over the Apple Card portfolio will bring in more than $20 billion in estimated card balances onto its Chase platform. For Goldman Sachs, the exit comes with a notable financial impact. The bank expects the transaction to result in a 46 cents per share increase to its fourth-quarter earnings in 2025. This gain accounts for a release of $2.48 billion of loan loss reserves, partially offset by reductions in net revenues and expenses related to the portfolio handover and contract termination.
Apple announced that the deal is set to close in approximately two years. The company has committed to sharing more specific details with cardholders as the transition date approaches. For now, users are advised to continue using their cards as usual, with no action required on their part.
