Apple Card switches hands but no immediate changes for users
The Apple Card, known for its intuitive features and other perks for consumers, will now be issued by JPMorgan but Apple says nothing will change for users.
The handover to JP Morgan brings together companies that play an increasingly large role in the way people pay for everything from utility bills to socks using phones, tablets or watches.
Apple said that features including 3% cash back on purchases and high-yield savings account affiliated with the card, will remain.
The card has been overseen by Goldman Sachs since it was launched by Apple in 2019, but it has been in talks to unload the card and move away from consumer products for some time.
The Apple Card was different from a traditional credit card — with no number on the front and the users’ name etched in metal. The card was viewed as a way to expand the company’s digital Apple Pay services, marrying the physical card to a virtual one and integrating both with the iPhone.
The shift solidifies JPMorgan’s dominance in the credit card sector. The company was the top U.S. credit card issuer in 2024 based on more than $1.344 trillion in purchase volume, according to The Nilson Report. It’s the sixth year in a row that JPMorgan has held the top spot.
JPMorgan said taking over the card will bring in more than $20 billion in estimated card balances to the Chase platform.
Apple said Wednesday that the deal would close in about 2 years and that cards can be used as normal. Mastercard will continue to serve as the payment network for Apple Card, with the card’s users still having access to Mastercard’s global acceptance and benefits.
Goldman Sachs expects the transaction to result in a 46 cents per share increase to its 2025 fourth-quarter earnings. This accounts for a release of $2.48 billion of loan loss reserves reflected in provision for credit losses, partially offset by a reduction in net revenues of $2.26 billion related to markdowns on the outstanding credit card loan portfolio and contract termination obligations and $38 million of expenses.
Apple said that more details will be shared with cardholders as the transition date draws closer.