Apple names JPMorgan Chase as new Apple Card issuer

On Wednesday, Apple announced that JPMorgan Chase is the new issuer of the Apple Card, replacing Goldman Sachs. Apple stated that the transition process will likely take up to 24 months to complete. The announcement confirms the new financial institution that will manage the card portfolio.

The financial terms of the transition involve a reallocation of card balances between the financial institutions, reflecting the scale of the portfolio. According to statements from the companies and reporting by media outlets:

• JPMorgan Chase stated the deal would bring over $20 billion in card balances to Chase.
• The Wall Street Journal reported that Goldman Sachs is offloading these card balances at a $1 billion discount.
• Goldman Sachs expects a $2.2 billion provision for credit losses related to the forward purchase commitment for the fourth quarter of 2025.

While Apple is changing its banking partner, the Apple Card will continue to use the Mastercard network for payment processing. For consumers, nothing is changing at the moment, and this operational status applies to both existing cardholders and individuals applying for new cards. By transferring the balances to JPMorgan Chase, the card’s operations will shift to a new banking partner acting as the issuer, while Mastercard continues to provide the payment network. For non-US readers, the distinction between these roles is important: Mastercard operates the payment network that routes transactions, while JPMorgan Chase acts as the issuer that holds the card balances and manages the credit lines.

The transition marks the end of the partnership between Apple and Goldman Sachs, which began when Apple launched its credit card in 2019. The card’s features, including its cash-back structure, remain unchanged during this transition period. Specifically, the card will continue to offer its established cash-back incentives for users:

• 3% cash back on purchases from Apple and other select partners.
• 2% cash back on transactions made using Apple Pay.
• 1% cash back on purchases made with the physical card.

Why it matters

This transition marks the end of a high-profile partnership and shifts over $20 billion in card balances, signaling a significant realignment in Apple’s financial services strategy.