Chase to Replace Goldman Sachs as Apple Card Issuer

On Wednesday evening, Apple announced that JPMorgan Chase will become the new issuer of the Apple Card. This move replaces Goldman Sachs, which has backed the company's credit cards since their launch in 2019.

This announcement ends speculation about a new partner for the Apple Card that has been stretching back a few years. The change comes as Goldman Sachs continues an exit from consumer lending. Simultaneously, Apple is managing a services business that has grown from $11 billion in quarterly revenue to more than $28 billion.

For existing customers, the transition will be gradual. Apple states that not much will change for cardholders anytime soon. The transition of the $20 billion credit card portfolio is scheduled to take place two years from now.

The partnership between Apple and Goldman Sachs began in 2019 with the launch of the Apple Card. For several years, Goldman Sachs served as the exclusive issuer and partner for the technology giant's financial products. However, recent developments indicate a major shift in strategy for the banking sector.

Goldman Sachs has been actively working to reduce its footprint in consumer lending. This exit from the consumer market has been a topic of discussion in financial circles for some time. The decision to find a new issuer for the Apple Card aligns with Goldman Sachs' broader strategic pivot away from consumer-facing products.

On the other side of the transaction, JPMorgan Chase is stepping in to fill the void. As one of the largest banks in the United States, Chase has extensive experience managing credit card portfolios. This acquisition represents a significant expansion of their consumer credit business.

While the banking partnership changes, Apple's focus on services remains a critical component of its revenue strategy. The company has seen massive growth in this sector over the last several years. According to the announcement, the services business has grown from $11 billion in quarterly revenue to more than $28 billion.

This growth trajectory highlights the importance of the Apple Card within Apple's ecosystem. The credit card serves as a gateway to the company's broader financial services and subscription offerings. Maintaining a robust credit card program is essential for retaining customers within the Apple ecosystem.

The transition to a new issuer must be managed carefully to ensure the continuity of this growth. With a $20 billion portfolio at stake, the logistics of the transfer are significant. Apple has indicated that the process will be handled over a two-year period to ensure stability.

For the millions of consumers currently using the Apple Card, the announcement brings a mix of curiosity and concern. However, Apple has explicitly stated that "not much will change anytime soon." This assurance is intended to calm fears regarding immediate disruptions to service or benefits.

The scheduled transition period of two years provides ample time for the two financial institutions to integrate systems and transfer accounts. During this time, cardholders can expect to continue using their cards as they currently do. The user experience within the Wallet app is expected to remain consistent.

Eventually, account management will shift to the JPMorgan Chase infrastructure. Until that specific transition date arrives, Goldman Sachs remains the issuer of record. Customers should look for official communications from Apple regarding specific dates and changes as the two-year timeline progresses.

This high-profile switch reflects broader trends in the financial technology and banking sectors. The relationship between big tech and traditional banking is constantly evolving. As tech companies seek to offer more integrated financial services, they must rely on established banks to handle the regulatory and capital requirements of lending.

The exit of Goldman Sachs from this specific consumer product suggests that not all traditional banks are ready to fully embrace the risks associated with mass-market credit cards. Conversely, JPMorgan Chase's willingness to take on the portfolio demonstrates their confidence in the profitability and stability of such partnerships.

As the 2026-2027 transition approaches, the industry will be watching closely. The success of this migration could set a precedent for future partnerships between technology giants and legacy financial institutions. For now, the focus remains on a smooth transfer of the $20 billion portfolio.