JPMorgan Chase becomes the new issuer of the Apple Card

In a significant shift, Apple has officially announced that JPMorgan Chase will succeed Goldman Sachs as the issuer of the Apple Card. This transition is expected to unfold over the next 24 months, marking a new chapter for Apple's financial product. Despite the change in banking partners, Apple reassures users that the Apple Card will continue to function on the Mastercard network for transactions. Current cardholders will not experience any immediate alterations, nor will those seeking to apply for new cards. JPMorgan Chase stands to gain substantially from this arrangement, with an estimated $20 billion in card balances transferring to their portfolio. In contrast, Goldman Sachs is reportedly letting go of these assets at a $1 billion discount. Looking ahead, Goldman has projected a $2.2 billion provision for credit losses tied to this shift, set for the fourth quarter of 2025. Speculation regarding the end of the Apple-Goldman partnership has circulated for several years. Recent reports indicated that JPMorgan was poised to become Apple's new financial collaborator. The Apple Card, which debuted in 2019, was initially a joint venture with Goldman Sachs and has attracted users with its unique features, including no late fees or penalty interest rates. It offers enticing cashback rewards: up to 3% on purchases from Apple and select partners, 2% when using Apple Pay, and 1% on transactions made with the physical card.