Apple Card Transition to Chase: What Developers and Users Need to Know

After years of speculation, Apple has confirmed Chase will become the new issuer for Apple Card, initiating a 24-month transition period away from Goldman Sachs. This shift marks a significant change in Apple's financial partnerships and raises questions about future features and integrations.

Why Goldman Sachs Exited

Goldman Sachs reported over $1 billion in losses from the Apple Card partnership since 2020. Three key factors drove this:

1. Higher-risk approvals: Goldman approved users with lower credit scores than typical for the bank, resulting in a 34% subprime borrowing rate (vs Chase's 15%) and 4% delinquency rate (above the 3.05% industry average).
2. Revenue limitations: Apple Card's no-fee structure (no annual/late/foreign transaction fees) restricted Goldman's ability to offset losses.
3. Strategic retreat: Goldman has been scaling back its consumer finance operations, including shutting down its Marcus brand and GM credit card.

The exit culminated in Goldman selling its entire $20 billion Apple Card portfolio to Chase at a $1 billion discount—an unprecedented move since credit balances typically sell at an 8% premium.

Transition Timeline & User Impact

Apple confirms no immediate action is required from cardholders during the 24-month transition:

• Existing cards remain active
• Daily Cash rewards (up to 3%) continue unchanged
• Payments still process via Mastercard
• Physical titanium cards still work
• Savings accounts remain accessible

After migration, Chase will appear as the issuer on credit reports. The Wallet app remains the management interface.

Developer & Technical Implications

While consumer features stay consistent, developers should monitor:

• API stability: Apple's Wallet integration shouldn't change, but backend banking APIs may shift during migration.
• Savings accounts: Chase will launch a new Apple Savings Account. Existing Goldman Sachs savings holders can choose to migrate or stay.
• Future features: Chase's infrastructure may enable new financial products leveraging their retail banking ecosystem.

Unanswered Questions

Key unknowns remain:

• Will Chase alter rewards structures post-transition?
• How will Apple Card integrate with Chase's existing payment apps?
• Will physical card designs change?

Apple promises updates "as the transition date approaches" via its official transition page.

This transition underscores the challenges of fintech-bank partnerships. For developers, it's a case study in maintaining service continuity during major backend migrations—a scenario increasingly common as financial tech evolves.