Apple announced Wednesday that JPMorgan Chase will become the new issuer of the Apple Card, replacing Goldman Sachs. The transition is expected to take up to 24 months, according to Apple.

While the issuing bank is changing, the Apple Card will continue to operate on the Mastercard network. For current cardholders and those applying for new cards, there will be no immediate changes.

JPMorgan Chase said the deal would bring over $20 billion in card balances to its portfolio. The Wall Street Journal reported that Goldman Sachs is offloading this amount at a $1 billion discount. Goldman Sachs anticipates a $2.2 billion provision for credit losses related to the forward purchase commitment in the fourth quarter of 2025.

Rumors of the Apple-Goldman Sachs partnership ending have circulated for several years. Last year, The Wall Street Journal reported that JPMorgan was the likely candidate to become Apple's new partner.

Apple launched the Apple Card in 2019 in partnership with Goldman Sachs, emphasizing features like no late fees or penalty interest rates. The card offers a tiered cashback system: 3% daily cashback on purchases from Apple and select partners, 2% from using Apple Pay, and 1% from using the physical card. The card's integration with the Apple Wallet and focus on user-friendly features aimed to disrupt the traditional credit card market.