Apple:

Today, Apple and Chase announced that Chase will become the new issuer of Apple Card, with an expected transition in approximately 24 months.

The Wall Street Journal broke the news (Apple News+) just ahead of the official announcement. Goldman Sachs (the exiting issuer) released its own statement; Chase simply copied Apple’s (and somehow made it uglier). I wonder which of them leaked the deal.

Goldman Sachs has been looking to exit the consumer credit card business for more than two years. The Apple Card has been especially challenging because it has “a high exposure to subprime borrowers and what has been a higher-than-industry-average delinquency rate,” reports the Journal. Chase purchased the portfolio for a $1 billion discount; the Journal notes that discounts “are rare and are reserved for the most challenged cases.”

Proving the difficulty of the business are these two nuggets from the Chase and Goldman Sachs press releases:

Goldman Sachs:

The transaction is expected to result in a $0.46 earnings per share increase to Goldman Sachs’ fourth quarter 2025 results. This reflects a release of $2.48 billion of loan loss reserves reflected in provision for credit losses […]

Chase:

[…] the purchase of the portfolio is estimated to bring over $20 billion of card balances to the Chase platform. […] JPMorganChase expects to recognize a $2.2 billion provision for credit losses in 4Q25 related to the forward purchase commitment […]

Chase’s $2.2 billion reserve on a $20 billion portfolio reflects an approximately 11% expected lifetime loss rate. That’s materially higher than the current ~4% loss rates across all bank credit cards—implying a borrower mix for Apple Card that skews somewhat below “prime” when compared to, say, Chase Sapphire—though we’re not exactly in NINJA-loan territory here.

I can understand why Goldman Sachs wanted out: an 11% expected loss rate—$1 out of every $9 in balances not being collected—is exorbitant for a company more comfortable serving wealthy clients. Chase is treating it as an acceptable risk for their broader credit card portfolio—and they’re operationally and institutionally more capable of supporting the “average” consumer.

Apple also released a set of Frequently Asked Questions (at the distinctive “learn.applecard.apple” URL), the answers to most of which are variations of “nothing changes” or “stay tuned.”

I’ve been a Chase credit card customer for well over a decade; my most used card is with them. I’ve never had any issues, so this transition should be a non-event. Not addressed in the announcement or FAQ is whether Apple Card will (eventually) show up alongside other Chase-issued cards on their (surprisingly good) website (and app) or remain locked away behind the functionally stunted Apple Card site and Apple Wallet. For now, I’ll assume that Apple will continue to maintain full operational control while Chase acts only as the issuer, meaning it won’t integrate the card with its site, which would be a shame.