TL;DR
Apple announced that JP Morgan Chase will replace Goldman Sachs as the issuing bank for Apple Card. A Wall Street Journal report says tensions stemmed from disputes over approval standards and handling of card balances, and the transition will take place over the next two years.
What happened
Apple confirmed last week that Chase will take over issuing the Apple Card from Goldman Sachs, ending the multi‑year partnership. The Wall Street Journal, citing about 20 people familiar with the matter, reports Apple characterized its relationship with Goldman as an “unhappy marriage,” driven in part by differences over underwriting: Apple pushed Goldman to approve the vast majority of applicants, which the bank carried out and resulted in a substantially larger share of balances held by lower‑credit borrowers. More than 30% of Apple Card balances reportedly belong to people with credit scores below typical prime thresholds. After Apple signaled it wanted to end the deal, it held talks with multiple potential partners — including Chase, American Express, Synchrony, Capital One and others — and explored alternatives such as shifting balances into a private‑credit vehicle. Chase won the business and secured contractual protections around delinquencies and the right to exit before closing. Apple says it will provide further details as the multi‑year transition proceeds.
Why it matters
- A change in issuing bank could alter underwriting and risk management for Apple Card accounts.
- High concentration of balances among lower‑credit borrowers raises exposure to delinquencies, affecting both Apple and its banking partner.
- Consideration of private‑credit funds highlights the complexity of offloading consumer loan portfolios at scale.
- Chase negotiated protections, signaling banks' caution about post‑closing performance and potential losses during the transition.
Key facts
- Apple announced JP Morgan Chase will take over as issuer of Apple Card, replacing Goldman Sachs.
- The Wall Street Journal report is based on interviews with roughly 20 people familiar with the situation.
- Apple reportedly pushed Goldman Sachs to approve nearly all Apple Card applicants.
- More than 30% of Apple Card balances are tied to borrowers with credit scores below commonly defined prime thresholds.
- Apple entered talks with multiple potential issuers, including Chase, American Express, Synchrony and Capital One.
- Apple, Goldman Sachs and other parties explored using a private‑credit fund to assume card balances.
- Goldman hoped for an Apple decision by early March 2025; that timeline did not hold and Goldman grew frustrated.
- Chase secured contractual protections against spikes in delinquencies and negotiated the right to walk away before closing.
- Apple says the transition away from Goldman Sachs will unfold over the next two years and more details will be released later.
What to watch next
- Whether Apple or Chase will change approval or underwriting policies for new Apple Card applicants (not confirmed in the source).
- If the companies ultimately use a private‑credit fund or other offloading mechanism to take on existing balances (not confirmed in the source).
- The detailed schedule and operational steps of the two‑year transition from Goldman Sachs to Chase, which Apple says it will outline as the deal progresses.
Quick glossary
- Issuing bank: A financial institution that provides credit cards to consumers, manages accounts, and assumes credit risk for balances.
- Underwriting: The process by which a lender evaluates a borrower's creditworthiness and decides whether to approve credit and on what terms.
- Subprime borrower: A borrower with a credit score below thresholds typically used by lenders to classify prime credit, often associated with higher default risk.
- Private‑credit fund: An investment vehicle that provides loans or buys debt outside public markets, often used for bespoke financing or to assume portfolios of loans.
Reader FAQ
Who will issue the Apple Card going forward?
Apple said JP Morgan Chase will take over as the card's issuer.
Why did Apple and Goldman Sachs part ways?
The WSJ report says disagreements over approval standards and handling of balances left the partnership strained; Apple described the relationship as an “unhappy marriage.”
When will the handover occur?
Apple says the transition from Goldman Sachs to Chase is expected to take place over the next two years.
Will existing card balances be moved to a private fund?
Apple, Goldman Sachs and potential partners explored using a private‑credit fund, but whether that will happen is not confirmed in the source.
Report: Apple to fine-tune Gemini independently, no Google branding on Siri, more Marcus Mendes Jan 13 2026 AAPL COMPANY APPLE CARD WSJ: Inside Apple’s ‘unhappy marriage’ with Goldman Sachs for…
Sources
- WSJ: Inside Apple’s ‘unhappy marriage’ with Goldman Sachs for Apple Card
- Why Goldman Sachs and Apple Weren't Happily Ever After
- CEOs Broke Up Apple Card Logjam | The Wall Street Journal
- WSJ: JPMorgan Chase strikes deal to take over Apple Card
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