Apple Card Set to Get $100 Million Boost from Visa as New Payment Network, Competing Interests from American Express

The partnership between Goldman Sachs and Apple Card, marked by its ups and downs, is expected to conclude eventually. Once that happens, Apple will be at liberty to select a new banking partner. However, a change in payment network will be necessary before any new collaboration can take shape. Fortunately, Apple is in talks with industry giants like Visa and American Express, with Visa reportedly interested in establishing a formal partnership valued at $100 million.

Visa and American Express Compete for a Strategic Alliance with Apple Card as Mastercard Fights to Maintain Its Position

According to a report from The Wall Street Journal, the $100 million offer made by Visa is comparable to contracts it typically strikes with affiliates like Costco. The potential alignment with Apple Card is viewed as a rare opportunity for Visa. Meanwhile, the CEO of American Express had previously shown little interest in pursuing a partnership, but the current climate suggests a shift in this stance, as the company now wishes to be both the card issuer and the payment network for Apple.

Mastercard, on the other hand, is expected to fiercely advocate for its continued association with Apple. As highlighted by AppleInsider, a significant detail is that Apple remains bound to its current payment network contract until the latter half of 2026. After this period, Apple will be able to explore new partnerships freely. In the meantime, discussions are underway between JPMorgan Chase and Synchrony Financial regarding the possibility of stepping in to replace Goldman Sachs as the official issuer for the Apple Card.

While negotiations are taking place behind the scenes, the situation remains fluid and unfinalized. It’s crucial for the existing partnership with Goldman Sachs to conclude before Apple can transition to a new banking collaborator.

For more details, check out the article on The Wall Street Journal.

Source & Images