With Apple $AAPL one chapter is definitively closing and another is opening. The company has officially confirmed that the new issuer of the Apple Card will be JPMorgan Chase $JPM , which will gradually take over the role of the previous partner Goldman Sachs. However, this is not a sudden cut — the whole process is expected to take about 24 months, so very gradually and without any disruption to the card's normal operation.
For existing users the key point is that in practice nothing changes for now. The Apple Card will operate the same as before, the payment network remains Mastercard, card management continues to be handled through the Wallet app and there is no need to reapply for the card. The physical titanium card isn’t going away either, and any changes should be communicated by Apple with sufficient notice. The whole transition is therefore more of a technical change "behind the scenes" than something users would notice in everyday use.
From a broader perspective, however, this is a significant strategic move. Goldman Sachs has in recent years stepped back from ambitions in retail banking, and with this step Apple is moving the Apple Card to a partner that has long-term experience with mass banking business, risk management, and regulation. For Apple this means a more stable foundation for further development of financial services and a reduced reputational and regulatory burden.
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From what I've read, $JPM is now quite worried about competition from the likes of $SOFI. Other banks have better systems and apps and are luring customers away. This could be one of the steps to boost its attractiveness to investors.
I have already sold Apple, but I like the concept and the system😃
JPM is a better bank and is closer to innovation, so this is a great opportunity for them.
For me this is unequivocally a positive move for Apple. $JPM is a stronger and more experienced partner for a mass-market banking product than Goldman and reduces regulatory and reputational risks.