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Takeaways from the Key Takeaways
- Visa has reportedly offered Apple around $100 million in a bid to replace Mastercard as the provider of the Cupertino-based tech firm's payments network.
- According to The Wall Street Journal, Visa and American Express have been trying to replace Mastercard as the payments network for Apple's credit card currently issued by Goldman Sachs.
- The report also stated that banks such as JPMorgan Chase, Synchrony Financial and others are competing to take Apple’s business from Goldman.
Visa (V) has reportedly offered Apple (AAPL) around $100 million in a bid to replace Mastercard (MA) as the provider of the Cupertino-based tech firm’s payments network.
The Wall Street Journal cited people who were familiar with the matter to say that Visa and American Express (AXP), which are both payment networks for Apple’s credit cards issued by Goldman Sachs, have been trying since last year to replace Mastercard. The report stated that JPMorgan Chase (JPM), Synchrony Financial, and other banks are in competition to take over Apple’s business provided by Goldman. The Journal reported Goldman is withdrawing from consumer loans and has been exploring a exit from credit cards since at least early in 2023.
Apple is expected, according to the report, to choose a credit card network first before selecting a bank to replace Goldman. The Journal reported that Mastercard is “fiercely vying” to maintain its current position while American Express wants to be both the issuer and network of the Apple card.
The Journal states that Visa and Mastercard are two of the largest payment processing networks in world. They issue cards via financial institution, unlike American Express.
Visa declined comment. Apple, Goldman Sachs and American Express didn’t respond immediately to requests for comment.
