JPMorgan Chase takes over Apple Card in $2.2 billion banking shift

Apple and JPMorgan Chase announced January 7, 2026, that Chase will become the new issuer of Apple Card, with an expected transition period lasting approximately 24 months. The agreement, valued at $2.2 billion according to CNBC reporting, marks Goldman Sachs's exit from a consumer credit partnership that generated substantial losses despite attracting 12 million users since the card's August 2019 launch.

Goldman Sachs entered the Apple Card partnership amid skepticism from established consumer credit competitors. According to CNBC, multiple banks with proven consumer credit operations—including Barclays, Citigroup, JPMorgan Chase, and Synchrony—had previously declined Apple's proposal, viewing the terms as financially risky. Goldman defended the partnership at launch, stating they were "thrilled" with the arrangement and sought "to disrupt consumer finance by putting the customer first."

The financial reality diverged sharply from Goldman's initial optimism. Bloomberg reported in January 2023 that Goldman Sachs suffered $1 billion in losses from Apple Card. Industry analysts cited the card's consumer-friendly features—including zero fees, encouragement of rapid debt paydown, industry-low interest rates, and mandates to approve as many iPhone users as possible—as fundamentally challenging for traditional banking economics.

Jennifer Bailey, Apple's vice president of Apple Pay and Apple Wallet, emphasized continuity for existing cardholders in the announcement. "We're incredibly proud of how Apple Card has transformed the credit card experience for customers by delivering innovative tools that empower users to make healthier financial decisions," Bailey stated. "Chase shares our commitment to innovation and delivering products and services that enhance consumers' lives."

Transition mechanics and cardholder impact

The 24-month transition timeline provides substantial buffer for systems integration and customer migration. Mastercard will remain the payment network for Apple Card throughout and following the transition. According to Linda Kirkpatrick, Mastercard's president of the Americas, "The innovation on Apple Card has taken the consumer payments experience to the next level, and we look forward to delivering simple, secure, and seamless payments at global scale."

Apple Card users can continue using their cards normally during the transition period. More information, including frequently asked questions, is available at learn.applecard.apple/transition. Additional details will be shared with users as the transition date approaches, according to the announcement.

The card's core features will persist under Chase's management: up to 3 percent unlimited Daily Cash back on every purchase, spending management tools within Apple Wallet, Apple Card Family sharing capabilities, access to high-yield Savings accounts, and interest-free Apple Card Monthly Installments for Apple product purchases.

Chase brings substantial consumer credit infrastructure to the partnership. Allison Beer, Chase's chief executive officer of Card & Connected Commerce, described the arrangement as deepening an existing relationship. "Apple is an iconic brand recognized globally for its innovation, design excellence, and commitment to delivering exceptional customer experiences," Beer stated. "We share a commitment to supporting consumer financial health, and we're proud to deepen our relationship by welcoming them as the newest partner in our industry-leading co-brand credit card program."

Goldman Sachs's consumer banking retreat

Goldman Sachs's exit from Apple Card represents broader strategic withdrawal from consumer lending businesses. The Wall Street Journal reported in June 2023 that Goldman entered discussions with American Express exploring potential partnership transfers. Reuters reported in December 2023 that Goldman faced a "rocky exit" from the Apple credit card partnership, with negotiations complicated by the scale of existing customer relationships and ongoing financial commitments.

The Consumer Financial Protection Bureau ordered Apple and Goldman Sachs in October 2024 to pay over $89 million related to Apple Card failures. According to the CFPB press release, the agencies "illegally mishandled transaction disputes and misled iPhone purchasers about interest-free payment options." The New York Times reported that this enforcement action addressed systematic issues in customer service and dispute resolution processes.

The CFPB terminated Apple's consent order in September 2025 under the second Trump administration, years ahead of the original schedule. Banking Dive reported September 23, 2025, that Russell Vought, acting CFPB director, issued an order terminating the consent decree alongside similar actions affecting other financial institutions. This regulatory shift occurred as the administration pursued broader changes to financial oversight policies.

Market dynamics and consumer credit economics

Apple Card launched August 20, 2019, following preview invitations sent to randomly selected users starting August 6. The card features positioned it distinctly within consumer credit markets: no late fees, foreign transaction fees, returned payment fees, or annual credit card fees. However, the card generates interest fees on carried balances and interchange fees charged to merchants.

Variable APRs for Apple Card range from 17.74% to 27.99% based on creditworthiness, according to rates as of November 1, 2025. Existing customers can view their specific variable APR in the Wallet app or at card.apple.com.

The cashback structure rewards different transaction methods variably: 1% on physical card purchases, 2% on Apple Pay purchases, and 3% on purchases at Apple Stores and selected partners. Cashback deposits into customers' Apple Cash accounts, Savings accounts, or applies as statement credits.

Apple Card's digital-first design minimizes traditional credit card elements. The physical titanium card displays no visible card number, CVV security code, expiration date, or signature. Users receive a 16-digit virtual card number for websites and apps not accepting Apple Pay. Card activation occurs through near-field communication technology concealed within the card's packaging.

MarketWatch reported October 1, 2019, that Goldman Sachs initially failed to report payments to credit reporting agencies, suggesting Apple and Goldman rushed development. The companies subsequently addressed this reporting gap.

Gender discrimination allegations emerged November 2019 after entrepreneur David Heinemeier Hansson posted on Twitter that he received 20 times the credit limit offered to his wife despite her superior credit score. Apple co-founder Steve Wozniak similarly reported receiving ten times his wife's credit limit. The New York State Department of Financial Services launched an investigation into Goldman Sachs's practices following these complaints.

The investigation concluded March 23, 2021, with the New York State Department of Financial Services issuing a report finding no evidence of unlawful discrimination under fair lending law. The investigation reviewed several thousand pages of records, written responses from Goldman Sachs Bank and Apple, witness interviews, and analysis of underwriting data for approximately 400,000 New York State applicants.

Implications for digital payment ecosystems

The partnership transition occurs amid significant developments in digital payment infrastructure. JPMorgan Chase approached Apple alongside Synchrony Financial and other major banks after Goldman planned consumer lending business exits. The competitive interest in Apple Card reflects the product's success at attracting cardholders despite challenging unit economics.

Forbes reported April 10, 2022, that Apple Card grew from approximately 3.1 million cardholders in March 2020 to 6.7 million in early 2022, reaching 12 million by early 2024. Six in ten Apple Card users employ it as their primary credit card, demonstrating strong engagement metrics despite the card's relatively recent market entry.

Apple introduced Apple Card Family April 20, 2021, enabling joint accounts and additional cardholders. Individuals 18 years and older can become co-owners, while those 13 and older can serve as additional cardholders. Up to five individuals may participate as additional cardholders or co-owners.

The high-yield Savings account launched April 17, 2023, backed by Goldman Sachs. Apple Card owners and co-owners could open Savings accounts offering 4.15% annual percentage yield with no fees and no minimum balance requirements. Savings accounts automatically deposit all future Daily Cash, providing cardholders additional options for managing rewards.

Chase's acquisition of Apple Card positions the bank to leverage Apple's installed base of active devices, which Apple reports reached new all-time highs across all product categories and geographic segments. The integration connects Chase's consumer banking infrastructure with Apple's ecosystem of iPhone, iPad, Apple Watch, and Mac users.

Visa offered approximately $100 million in April 2025 to replace Mastercard as Apple Card's payment network, according to Wall Street Journal reporting. This competitive positioning demonstrates payment networks' recognition of Apple Card's strategic value despite its challenging economics for issuers.

Privacy and security architecture

Apple Card employs device-specific unique card numbers stored in secure elements used by Apple Pay for transaction processing and cryptographic functions. Each transaction uses one-time dynamic security codes authorized through Face ID, Touch ID, or passcode authentication.

Transaction history synchronizes across devices using iCloud with encryption ensuring only authorized account holders can view records. Two-factor authentication must be enabled on users' Apple ID accounts to apply for Apple Card.

The Wallet app categorizes Apple Card transactions and provides weekly and monthly activity summaries. Apple Maps supplies color-coded categories, map locations, and merchant contact details where available. Apple added support in iOS 17.4 for third-party budgeting apps to access transaction data.

Technical infrastructure and operational considerations

Goldman Sachs assumed the issuing bank role for Apple Card's initial U.S. launch, while Mastercard served as the payment network. The operational infrastructure supporting Apple Card required significant systems integration between Apple's consumer-facing Wallet application, Goldman's banking backend, and Mastercard's global payment processing network.

Users apply for Apple Card directly from the Wallet app. Upon approval, a digital Apple Card becomes available immediately on all user devices. Physical cards ship separately for locations not accepting contactless payments.

The titanium Apple Card design features engraved logos and laser-etched cardholder names. Users with iPhone XS and later models activate physical cards by moving their phones near NFC tags within card packaging. iPhone X and earlier users must open the Wallet app before tapping phones against cards.

Chase's banking infrastructure includes established credit card operations, fraud detection systems, customer service capabilities, and regulatory compliance frameworks. The 24-month transition period allows for comprehensive systems migration while maintaining service continuity for 12 million existing cardholders.

Apple Card's integration with Apple's broader ecosystem creates dependencies between banking services and consumer electronics platforms. The Wallet app serves as the primary interface for card management, transaction monitoring, and customer service access. This tight integration differentiates Apple Card from traditional credit card offerings while creating technical complexity for issuer transitions.

Regulatory environment and financial oversight

The Consumer Financial Protection Bureau's October 2024 enforcement action against Apple and Goldman Sachs addressed systematic failures in transaction dispute handling and disclosure of interest-free payment options. The $89 million penalty reflected CFPB findings that the companies violated consumer protection standards in Apple Card operations.

The subsequent September 2025 termination of Apple's consent order under the Trump administration's CFPB leadership demonstrated shifting regulatory priorities. The early termination occurred alongside similar actions affecting U.S. Bank and other financial institutions, reflecting broader changes in financial services oversight approaches.

Financial institutions face ongoing scrutiny regarding credit card practices, including fee structures, interest rate disclosures, dispute resolution processes, and fair lending compliance. Apple Card's zero-fee structure addressed some regulatory concerns while creating financial sustainability challenges for Goldman Sachs.

The New York State Department of Financial Services investigation into gender discrimination allegations demonstrated state-level oversight capabilities for consumer credit products. The investigation's conclusion finding no unlawful discrimination under fair lending law provided regulatory clarity while highlighting algorithmic underwriting scrutiny in credit decisions.

Market positioning and competitive dynamics

Apple Card competes within crowded consumer credit markets dominated by established bank issuers and payment networks. The product differentiated through tight integration with Apple's ecosystem, simplified user interfaces, and consumer-friendly fee structures.

Competitors including Chase's own credit card portfolio, American Express consumer products, and other tech company payment initiatives serve similar customer segments. Apple's brand strength and installed device base provided customer acquisition advantages that partially offset unfavorable unit economics.

The cashback rates—particularly 3% at Apple Stores and selected partners—positioned Apple Card competitively against rewards credit cards from traditional issuers. However, the 1% rate on physical card transactions lagged competitor offerings, encouraging Apple Pay adoption for higher 2% rewards.

Apple Card Monthly Installments enabled interest-free financing for Apple products, supporting hardware sales while differentiating the card's value proposition. This feature aligned credit card benefits directly with Apple's core business objectives around device sales and ecosystem engagement.

Timeline

• January 7, 2026: Apple and JPMorgan Chase announce Chase will become Apple Card issuer in 24-month transition valued at $2.2 billion
• September 23, 2025: CFPB terminates Apple consent order years ahead of schedule under Trump administration
• April 2025: Visa offers $100 million payment to replace Mastercard as Apple Card's payment network
• October 23, 2024: CFPB orders Apple and Goldman Sachs to pay over $89 million for Apple Card failures
• April 17, 2023: Apple launches Savings accounts with 4.15% APY for Apple Card holders
• January 2023: Bloomberg reports Goldman Sachs suffered $1 billion losses on Apple Card
• June 2023: Wall Street Journal reports Goldman Sachs seeking Apple Card partnership exit
• December 2023: Reuters reports Goldman faces "rocky exit" from Apple Card partnership
• April 20, 2021: Apple introduces Apple Card Family for joint accounts and additional cardholders
• March 23, 2021: New York State Department of Financial Services concludes discrimination investigation finding no evidence of unlawful practices
• November 2019: Gender discrimination allegations emerge regarding Apple Card credit limits
• October 1, 2019: MarketWatch reports Goldman Sachs not reporting payments to credit bureaus
• August 20, 2019: Apple Card launches publicly in United States after preview period
• August 6, 2019: Apple begins sending early preview invitations to selected users
• March 25, 2019: Apple announces Apple Card at special event focused on services

Key terms

Issuing bank represents the financial institution that provides credit facilities, manages cardholder accounts, assumes default risk, and handles regulatory compliance for credit card products. Goldman Sachs served as Apple Card's issuing bank from launch through the Chase transition, bearing losses when cardholders carried balances at below-market interest rates while Apple's terms mandated broad credit approval.

Payment network constitutes the infrastructure processing transactions between merchants, issuing banks, and acquiring banks for electronic payments. Mastercard serves as Apple Card's payment network, handling authorization, clearing, and settlement across global merchant locations while generating revenue through interchange fees charged to merchants rather than cardholders directly.

Interchange fees are charges paid by merchants to card-issuing banks for processing credit card transactions, typically ranging from 1.5% to 3.5% of transaction values. These fees represent a primary revenue source for issuing banks since Apple Card eliminates annual fees, late fees, foreign transaction fees, and other charges that traditionally contribute to credit card profitability.

Daily Cash describes Apple Card's cashback rewards program providing 1% on physical card purchases, 2% on Apple Pay transactions, and 3% at Apple and selected partners. Unlike traditional credit card rewards that accumulate monthly or quarterly, Daily Cash deposits rewards immediately into Apple Cash accounts or Savings accounts, creating psychological reinforcement for card usage while maintaining competitive rewards structures.

Consumer Financial Protection Bureau is the federal regulatory agency established following the 2008 financial crisis to supervise financial institutions and enforce consumer protection laws in banking services. The CFPB's October 2024 enforcement action against Apple and Goldman Sachs, subsequently terminated in September 2025, demonstrates the agency's authority over credit card operations and its role in addressing systematic consumer harm.

Apple Card Family enables Apple Card account sharing among Family Sharing group members, allowing up to five individuals to participate as co-owners or additional cardholders. Co-owners share equal liability and credit reporting while additional cardholders aged 13-17 can make purchases without payment responsibility, creating differentiated credit-building opportunities that distinguish Apple Card from traditional authorized user arrangements.

High-yield Savings account refers to deposit accounts offering above-market interest rates, launched by Apple in April 2023 with Goldman Sachs backing at 4.15% annual percentage yield. These accounts automatically receive Daily Cash deposits and require no minimum balances or fees, extending Apple's financial services beyond credit into deposit relationships while competing with online banks and fintech platforms.

Apple Card Monthly Installments enables interest-free financing for Apple product purchases over multiple months when checking out with Apple Card at Apple. This feature supports hardware sales by reducing upfront purchase barriers while differentiating Apple Card's value proposition from competitors, though installment balances still contribute to utilization ratios affecting credit scores.

Contactless payment technology transmits payment credentials through near-field communication between cards or mobile devices and merchant terminals, enabling tap-to-pay transactions without physical card insertion. Apple Card's design emphasizes Apple Pay contactless payments offering 2% cashback versus 1% for physical card swipes, incentivizing adoption of contactless infrastructure while improving transaction security through tokenization.

Credit reporting involves issuers transmitting payment history, utilization rates, and account status to credit bureaus including Experian, Equifax, and TransUnion for inclusion in consumer credit reports. Goldman Sachs's initial failure to report Apple Card data in 2019 created complications for cardholders seeking to build credit history, while the system's subsequent correction enabled proper credit file reporting across all three major bureaus.

Summary

Who: Apple Inc. and JPMorgan Chase announced the partnership transition, with Apple's Jennifer Bailey and Chase's Allison Beer providing official statements. Goldman Sachs exits after serving as the original issuing bank since August 2019, affecting 12 million Apple Card users.

What: JPMorgan Chase will become the new issuer of Apple Card through a $2.2 billion agreement, maintaining all existing features including Daily Cash rewards, Apple Card Family capabilities, Savings accounts, and interest-free Monthly Installments. Mastercard continues as the payment network throughout the transition.

When: The announcement occurred January 7, 2026, with an expected transition period lasting approximately 24 months. Goldman Sachs reported $1 billion in losses by January 2023, prompting exit discussions that culminated in the Chase agreement.

Where: The partnership affects Apple Card operations exclusively within the United States, where the product launched August 2019 and currently serves 12 million cardholders across all geographic regions.

Why: Goldman Sachs's strategic retreat from consumer lending businesses followed substantial financial losses on Apple Card's consumer-friendly terms, while Chase's acquisition provides access to Apple's valuable customer base and strengthens its position in digital-first credit products as traditional banking faces increasing competition from fintech alternatives.