Report: Visa Offers $100 Million to Get Apple Credit Card Business
Visa reportedly offered Apple about $100 million to get the tech giant’s credit card business, which is held by Mastercard.
The offer came as the payment network and rival American Express are trying to win the Apple card business, and Mastercard is fighting to keep it, The Wall Street Journal (WSJ) reported Tuesday (April 1), citing unnamed sources.
Reached by PYMNTS, a Visa spokesperson said the company does not comment on rumors or speculation.
The Apple card business is in play because the bank behind it, Goldman Sachs, is exiting the consumer lending sector, according to the WSJ report.
While Apple is looking for a new bank, it plans to select a payment network first, the report said.
The payment networks are competing for the business because not only is Apple one of the biggest co-branded credit card programs — with about $20 billion in balances — but the company plays a growing role in many consumers’ payments and other financial needs, per the report.
Apple debuted its credit card in 2019 in conjunction with Goldman Sachs and Mastercard, PYMNTS reported at the time. At launch, key features of the card included no fees, daily cash-back rewards, and the ability to sign up for the card with an iPhone in the Wallet app and get the card within minutes, issued straight to the phone.
It was reported in July 2023 that Goldman Sachs’ credit card partnership with Apple could be nearing an end, and that the banking giant was in discussions with American Express to take over the credit card and other collaborations between Goldman and Apple.
Goldman had announced plans in late 2022 to scale back its consumer banking offerings, though its agreement with Apple remained untouched at the time.
In January, it was reported that Apple was in talks with Barclays and credit card issuer Synchrony Financial to replace Goldman Sachs.
Goldman Sachs CEO David Solomon said at the time that while the bank had a contract with Apple to run the partnership until 2030, there was a possibility that it could end before then. The bank was narrowing its strategic focus and exiting some businesses.
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