Chase to Become New Issuer of Apple Card
Today, Apple and Chase announced a landmark deal that will see Chase become the new issuer of Apple Card, with an expected transition in approximately 24 months. The deal concludes over a year of high-stakes negotiations with Goldman Sachs, after their partnership with Apple soured in 2023.
Apple Card users can continue to enjoy the award-winning experience of Apple Card, which includes up to 3% unlimited Daily Cash back on every purchase, easy-to-navigate spending tools, Apple Card Family, access to a high-yield Savings account, and more. Chase says that Mastercard will remain the payment network for Apple Card, and Apple Card users can continue to access Mastercard’s global acceptance and benefits.
“Apple is an iconic brand recognized globally for its innovation, design excellence, and commitment to delivering exceptional customer experiences,” said Allison Beer, Chase’s chief executive officer of Card & Connected Commerce. “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. We’re excited to innovate together in the future.”
Chase was the “last bank standing” after competitors like American Express and Barclays dropped out, and they will bring over $20 billion of card balances. To secure the deal, Chase reportedly negotiated a discount of over $1 billion on the portfolio. This discount helps offset the risk of taking on a higher percentage of subprime and lower-credit borrowers than Chase typically services.
While Chase will book a $2.2 billion provision for potential credit losses in its Q4 earnings, the move further cements its position as the largest credit card issuer in the country. Meanwhile, the exit allows Goldman Sachs to pivot away from consumer finance and return its focus to its core investment banking operations.
