Apple has announced a significant change for Apple Card users, revealing that JPMorgan Chase will take over as the new issuer, replacing Goldman Sachs. This update marks the end of speculation surrounding a potential new partner for the Apple Card, as Goldman Sachs shifts away from consumer lending. The transition of the $20 billion credit card portfolio is set to occur over the next two years.
Apple Card holders can expect to retain the current benefits of the card, such as up to 3 percent unlimited Daily Cash back, user-friendly spending tools, Apple Card Family features, access to a high-yield Savings account, and more. Mastercard will continue to serve as the payment network for Apple Card, ensuring users maintain access to Mastercard’s global acceptance and perks.
While immediate changes are not anticipated, Apple’s FAQ outlines that account management, savings account access, and card applications will remain consistent for now. Any future alterations related to physical cards or card details will be communicated closer to the transition date.
Reports from sources cited by the Wall Street Journal and CNBC indicate that JPMorgan Chase’s acquisition involves a discount of over $1 billion, reflecting a substantial exposure to subprime borrowers and above-average delinquency rates compared to the industry standard. Furthermore, Chase is expected to introduce a new savings account program, offering current account holders the opportunity to switch to this alternative.
Source: The Verge