Visa Seeking to Acquire Apple Card Operations Valued at Approximately $20 Billion
In a significant move for the tech and finance industries, Apple is reportedly in the process of replacing Goldman Sachs as the issuing bank for the Apple Card, with JPMorgan Chase emerging as the primary contender for the role [1][3][4][5].
The Apple Card, introduced in 2019, was a joint venture between Apple and Goldman Sachs, with Apple Payments Services LLC serving as Goldman Sachs Bank USA's service provider for these products [2]. However, Goldman Sachs has indicated its intention to exit this partnership, reportedly due to incurred losses in its consumer banking effort connected to the Apple Card [3][5].
JPMorgan Chase, with its significant existing business relationship with Apple, including being an early Apple Pay partner and a major credit card issuer for Apple purchases, has emerged as a natural fit for this role [3]. Talks between the two companies started around early 2024 and have become advanced by mid-2025, although no final agreement has been signed yet [1][3][4][5].
The potential transition to JPMorgan Chase has several implications for the banking and financial industry. For JPMorgan, it presents a strong digital banking opportunity, allowing the company to leverage Apple's large, mostly millennial customer base to sell a broader range of financial products, deepening consumer engagement beyond credit cards [4].
For Apple, partnering with JPMorgan may enhance the card's services and customer experience, supporting Apple's efforts to improve credit card functionalities and strengthen integration across its ecosystem [3]. This move also underscores Apple's traditional preference for controlling every aspect of its products.
The end of Goldman Sachs' role in the Apple Card partnership indicates the operational, regulatory, and profitability challenges faced by tech-finance partnerships, which can reshape collaboration strategies in the fintech space [3]. Third parties like CoreCard, which provided specialized technology features for the Apple Card, may lose relevance if JPMorgan takes over and builds a new servicing infrastructure [1].
Notably, the Apple Card currently does not offer perks of other cards, such as purchase protection or access to exclusive lounges [6]. However, the shift to JPMorgan could potentially change this, as the new partnership could bring new benefits to Apple Card users.
In a related development, the Consumer Financial Protection Bureau fined Apple and Goldman Sachs $89 million for problems with the roll-out of the Apple Card, including poor customer support and unclear terms for its zero-interest finance deals [7].
Apple Card customers are currently carrying $20 billion in balances [8], and the potential transition to JPMorgan Chase could significantly impact the credit card market, with JPMorgan potentially cementing its position as the largest U.S. credit card issuer [4][5]. The shift highlights evolving fintech alliances, with major banks aiming to leverage large tech company customer bases to expand market share and innovate in digital financial services [1][3][4][5].
- The future role of JPMorgan Chase in the Apple Card partnership could potentially offer enhanced technology-driven services for Apple Card users, as the company seeks to leverage Apple's large, tech-savvy customer base and deepen consumer engagement.
- The upcoming collaboration between Apple and JPMorgan may result in the Apple Card evolving to provide perks comparable to other credit cards, such as purchase protection and access to exclusive lounges, further enhancing the card's value for users.
- The transition of the Apple Card's issuing bank from Goldman Sachs to JPMorgan Chase underscores the importance of tech companies enhancing control over their products, a strategy that could reshape future fintech alliances and partnerships in the technology and finance industries.
