Visa Offers Apple $100 Million to Take Over Credit Card from Mastercard

Visa has made a bold move to take over Apple's credit card from Mastercard, offering the tech giant approximately $100 million. This high-stakes battle among major payment networks highlights the significance of Apple’s financial ecosystem.

Why Apple’s Credit Card Is in Play

Apple’s credit card is up for grabs due to Goldman Sachs’ decision to exit the consumer lending sector. As the current issuer of the Apple Card, Goldman’s departure has sparked interest from major banks, including JPMorgan Chase and Synchrony Financial, to take over as the new issuer. However, an equally fierce competition is unfolding between Visa, American Express, and Mastercard for the role of the card's payment network.

Visa’s Aggressive Bid

Visa, the world's largest payment network, has reportedly offered Apple a substantial upfront payment to secure the deal—an incentive typically reserved for the biggest card programs. This approach mirrors Visa’s previous strategy when it secured Costco’s credit card partnership nearly a decade ago.

American Express is also vying for the deal, aiming to become both the issuer and the network provider for the Apple Card. Mastercard, which currently serves as the payment network, is actively fighting to retain its role.

Why Payment Networks Want the Apple Card

The Apple Card is among the largest co-branded credit card programs, processing billions in transactions. Payment networks earn revenue based on transaction volume, making Apple’s card a lucrative asset.

More significantly, Apple has positioned itself at the center of consumer payments and financial habits through Apple Pay and Apple Wallet. Networks recognize that securing this partnership means staying closely integrated with Apple’s future financial innovations. For instance, Mastercard has explored leveraging its fintech subsidiary, Finicity, to enable users to view their bank account balances within Apple’s ecosystem.

What Happens Next?

Before selecting a new issuer, Apple is expected to decide which payment network will power the card. Once the network is determined, Apple will finalize a deal with a new banking partner to replace Goldman Sachs.

If a deal is reached, it will mark the conclusion of Goldman’s short-lived and costly venture into consumer lending. With an estimated $20 billion in outstanding balances, the Apple Card transition will be one of the largest co-branded credit card deals in recent years.

Stay tuned as Visa, American Express, and Mastercard battle for the future of Apple’s credit card program.