JPMorganChase Set to Become the New Issuer of Apple Card
JPMorganChase to Take Over Apple Card Issuance
Apple and JPMorgan Chase have entered an agreement for JPMorgan Chase to become the new issuer of Apple Card, with the transition expected to take place over approximately 24 months. Apple Card users can continue using the card normally during the transition, Mastercard will remain the payment network, and the portfolio transfer remains subject to regulatory approvals.
Structural and Financial Implications of the Transition
Issuer Transition Timeline and Scale: The agreement includes the forward purchase of the Apple Card portfolio, estimated at over $20 billion in card balances, with closing expected in about 24 months subject to regulatory clearance.
Balance Sheet Impact for the Incoming Issuer: A provision of approximately $2.2 billion for credit losses is expected to be recognized in the fourth quarter of 2025, reflecting the forward purchase commitment tied to the portfolio transfer.
Continuity of Card Functionality for Users: Existing Apple Card features, including Daily Cash rewards, Apple Card Family, installment payments on Apple products, and linked savings accounts, remain unchanged throughout the transition period.
Role of the Payment Network: Mastercard continues as the global payment network, ensuring uninterrupted acceptance, processing, and associated network benefits for cardholders.
Positioning within the Apple Wallet Ecosystem: Apple Card remains embedded within Apple Wallet, maintaining real-time spend tracking, rewards visibility, and account management directly through the iPhone interface.
Embedded Banking Distribution Model: The new issuing arrangement places card issuance and associated banking services closer to where users already manage payments and credentials, reducing reliance on standalone banking channels.
Broader Strategic Context: The transition aligns with wider adoption of embedded finance models, where financial products are integrated directly into consumer platforms, supporting sustained engagement and long-term customer relationships without requiring platform switching.
Conclusion
Overall, this issuer shift reflects how co-branded credit cards are increasingly being treated as embedded financial products tied to digital ecosystems rather than standalone banking offerings—combining large-scale balance transfers with platform-centric distribution.
