JPMorgan Chase Takes Over Management of Apple Card

JPMorgan Chase is the New Issuer of the Apple Card

JPMorgan Chase takes over the issuance of the Apple Card, as announced by Apple. The statement comes after a report from The Wall Street Journal, revealing the agreement between the two companies.

The transition to the new issuer is expected to occur within two years. During this period, customers will continue using their Apple Cards as usual. Apple has provided a FAQ regarding the change, emphasizing that there is no immediate action required from users.

History of the Partnership with Goldman Sachs

Goldman Sachs was the original partner in the launch of the Apple Card in 2019. In recent years, there have been indications that Goldman was interested in ending its participation. The WSJ reported that negotiations with JPMorgan lasted over a year.

Although Apple has not disclosed many details about the new partnership, sources mention that Goldman Sachs is transferring about $20 billion in customer balances to JPMorgan, with a significant discount of over $1 billion.

New Partnership Scenario

Despite the change in issuer, Mastercard will continue to serve as the payment network for the Apple Card. This means that even with the issuer change, users will have the same payment experience in their transactions.

This change may represent a new business model for Apple, which is looking to expand its partnerships in the financial sector. Goldman Sachs' move could indicate a restructuring in its long-term financial strategy.

The future of the Apple Card under JPMorgan's management may bring new opportunities and services for its users, but the overall impact will only be clear after the transition is completed.