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Apple’s services strategy is anchored in hardware, turning devices into gateways for recurring engagement across payments, commerce and content.
Financial services are increasingly part of that design, where consumers already authenticate, store credentials and transact.
That strategy’s latest chapter comes as Apple announced Wednesday (Jan. 7) that JPMorgan Chase will become the new issuer of the Apple Card, replacing Goldman Sachs after a transition period of about two years.
The pact keeps Mastercard as the network and ensures continuity for existing Apple Card users, where Goldman is transferring a roughly $20 billion portfolio (the portfolio balances are noted in the company’s latest Form 10-Q) while resetting the banking relationship behind the cards.
As for the exposure inherent in the portfolio, the Goldman filing indicated that 66% of the card loans were tied to borrowers with FICO scores above 660; the remainder were below that threshold.
The Apple Card Inside the Ecosystem
Since its launch in 2019, the Apple Card has been positioned as an extension of Apple Wallet. The card lives inside the iPhone, integrates with Apple Pay and emphasizes real-time visibility into spending, rewards and balances.
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For Apple, the card remains a cornerstone financial product to foster daily engagement inside the Apple Wallet.
From Card Issuance to Cross-Selling Banking
For JPMorgan Chase, the opportunity extends beyond taking over card issuance. Chase can conceivably position banking and savings services closer to where consumers already spend, manage wallets and interact with financial tools. Over time, that presence can support cross-selling strategies that extend beyond credit into deposits, savings and broader banking relationships, without forcing consumers to leave the Apple environment.
In practical terms, that means meeting customers where they already check balances, authenticate transactions and manage credentials, rather than pulling them into separate banking channels.
Consumers Are Ready for Embedded Banking
PYMNTS Intelligence research shows that consumers are increasingly comfortable accessing financial services inside nonbank digital environments and across platforms. A growing share of consumers prefer financial tools that are integrated into the platforms they already use for commerce, mobility and digital life, rather than standalone banking apps.
Apple and JPMorgan Chase are moving in step with broader market dynamics found in the PYMNTS Intelligence report “Embedded Finance as a Strategic Initiative.” Embedded finance, including embedded banking, has moved from optional to foundational across industries.
According to the report, 99.8% of surveyed companies now offer at least one embedded finance capability, with banking among the most common features at 69% adoption. Nearly half of firms also offer consumer-focused banking features, such as savings accounts, rewards or early direct deposit.
The motivation is not short-term revenue. The report found that 45% of companies said stronger customer relationships are the primary reason they embed financial services, while 38% cited improved user experience.
What JPMorgan Chase Gains From the Ecosystem
For JPMorgan Chase, embedding banking services inside Apple’s ecosystem aligns with shifting competitive realities. Deposit competition is intensifying, acquisition costs remain high, and engagement increasingly drives lifetime value.
The PYMNTS Intelligence report showed that 86% of firms measure embedded finance success by financial performance and 75% by customer growth, reinforcing the notion that embedded banking is now a balance sheet strategy, not a front-end experiment.
Banks that successfully embed services inside dominant consumer ecosystems gain stickier balances, richer behavioral data and lower friction in onboarding and cross-selling. That advantage becomes especially meaningful when financial services are integrated into daily consumer behavior rather than episodic banking interactions, although the new alliance between the banking and the tech giants will unfold over time.