What the change of Apple Card processor means for users

The transition of the Apple Card from being financed by Goldman Sachs to JPMorgan Chase will probably cut out a smaller company, CoreCard, that currently handles the credit card.

Goldman has been using fintech payment processing company CoreCard to manage the Apple Card business, reports the Wall Street Journal

When JPMorgan takes over, however, it will likely drop CoreCard as the Apple Card’s processor in favor of its own in-house payment processing. Before it got the Apple account and its estimated 12 million users, CoreCard was considered a niche processor.

CoreCard currently manages the day-to-day functioning of the Apple Card, ensuring that transactions are completed and handling the billing of users. It is also CoreCard that has been responsible for developing some of the distinctive features of the card alongside Apple, like its first-of-the-month billing cycle.

CoreCard also developed the “payment wheel” graphic on its bills that show cardholders their projected interest costs, widely seen as consumer-friendly and educational. JPMorgan Chase will be responsible for the Apple Card once Goldman Sachs exits the consumer market.

For users of the Apple Card, the changes are likely to be perceived as minor. Goldman Sachs, which currently manages the card, announced in 2023 that it would be withdrawing from the consumer credit market. It originally took on the Apple Card in 2019.

Changes unlikely in the short term

Because JPMorgan Chase has its own processing capabilities, CoreCard owner Richard Strange believes it likely that the Apple Card processing job will go in-house, dropping CoreCard.

The transition will mean the loss of its biggest client. When Goldman first announced in early 2023 that it would be withdrawing from consumer lending, CoreCard’s stock fell some 70 percent.

The stock has recovered some ground since then. The change, however, forced CoreCard to sell itself to Euronet, which provides debit-card processing for banks and other financial firms mostly in Europe and Asia.

JPMorgan will be unlikely to make noticeable changes to how Apple Card holders are handled as the transition completes.

The card’s features, including CoreCard’s billing cycle and graphic presentation of payment options, have proven popular with users. Thus, any new features or changes will presumably be rolled out over time.

JPMorgan has not spoken about its future plans for the Apple Card. Euronet bought CoreCard for $248 million in an all-stock deal.