Archive — US — techcrunch
JPMorgan Chase becomes the new issuer of the Apple Card
Apple has announced JPMorgan Chase as the new issuer of the Apple Card, replacing Goldman Sachs, with a transition expected to take 24 months. JPMorgan will absorb over $20 billion in card balances, while Goldman Sachs faces a $1 billion loss on the offload and anticipates $2.2 billion in credit loss provisions for late 2025. The card continues to use the Mastercard network, with no immediate changes for consumers.
Key points
- Apple changes its banking partner from Goldman Sachs to JPMorgan Chase.
- The transition is expected to take up to 24 months.
- JPMorgan Chase will take over more than $20 billion in card balances.
- Goldman Sachs is offloading this amount at a loss of $1 billion.
- Goldman Sachs expects a $2.2 billion provision for credit losses for Q4 2025.
- The Apple Card has been in existence since 2019, offering cashback rewards.
- Consistent use of the Mastercard network for payments remains unchanged.
Why it matters
- The shift in banking partnerships aligns with broader trends of companies reassessing fintech relationships.
- Increased scrutiny over credit loss provisions reflects current economic uncertainties and regulatory pressures.
- The digital payment landscape is evolving, with partnerships influencing accessibility and consumer spending habits.
- The move supports JPMorgan's strategy in dominating the credit card market amid the growing competition.
The transition to JPMorgan Chase marks a significant shift for the Apple Card, impacting the credit card market while reflecting changing dynamics in fintech partnerships and consumer financing strategies.