Apple has announced that JPMorgan Chase will become the new issuer of the Apple Card, marking a major shift in its credit card partnership. The move follows reports that Apple and JPMorgan had been in negotiations for over a year.

Apple confirmed on Wednesday that JPMorgan Chase will take over as the issuer of the Apple Card. The announcement came shortly after The Wall Street Journal reported that the two companies had finalised a deal.

According to Apple, the transition process will take around two years to complete.

What this means for Apple Card users

For now, Apple says customers can continue using their Apple Cards as usual. There will be no immediate changes to accounts, billing, or card functionality during the transition period.

Apple has published an FAQ addressing the change and said users will be notified later if any action is required from them.

Despite the change in issuer, Mastercard will continue to serve as the Apple Card’s payment network. This means the card’s acceptance and payment infrastructure will remain unchanged under the new partnership.

Goldman Sachs exit was long expected

Goldman Sachs partnered with Apple to launch the Apple Card in 2019. However, signs had emerged over the past few years that the investment bank was seeking to exit the consumer credit business tied to Apple.

Apple has not shared financial details of either the old or new agreements.

According to The Wall Street Journal, negotiations between Apple and JPMorgan Chase had been ongoing for more than a year. Sources cited in the report said Goldman Sachs is offloading nearly $20 billion in outstanding Apple Card customer balances.

The report added that the balances are being sold at a discount exceeding $1 billion, highlighting the financial strain of the partnership for Goldman Sachs.