A competition appears to be unfolding among various firms eager to engage in the Apple Card arena. A recent report from The Wall Street Journal reveals that Visa, Mastercard, and American Express are all in discussions to assume the payment network role for Apple Card.
To clarify, Goldman Sachs currently acts as the backing bank for the Apple Card. Mastercard is responsible for facilitating transactions between the bank and merchants as the card’s payment network. As highlighted in numerous reports, Goldman Sachs is actively seeking a way out of its arrangement with Apple, having incurred significant financial losses from the partnership.
Before Apple selects a new banking partner to succeed Goldman Sachs, it must first determine which network will support the Apple Card.
The latest information from The Wall Street Journal (Apple News+ access) indicates that both Visa and American Express are attempting to disrupt Mastercard’s role as the payment network for Apple Card. Visa has reportedly made a substantial offer to secure the Apple Card business, which includes a $100 million “upfront payment to Apple that is typically reserved for the largest card programs.”
On the other hand, American Express aims to take on both the roles of issuer and network for Apple Card, replacing both Goldman Sachs and Mastercard.
Despite the competitive landscape, Mastercard is fiercely defending its position as the network provider, according to the report. Furthermore, Mastercard is exploring the integration of its Finicity platform within the Apple ecosystem:
For years, major banks and networks have been cautious of Apple’s ambitions, establishing a complex relationship while taking measures to hinder the tech giant’s advancements in consumer finance, yet seeking proximity to Apple.
The network that solidifies this agreement is likely to remain closely aligned with Apple’s future payment initiatives.
For instance, Mastercard has been considering the use of its fintech, Finicity, which offers software that connects with consumers’ bank accounts with their consent, allowing users to view their deposit-account balances within the Apple ecosystem, as reported by sources familiar with the situation.
Since at least November 2023, Goldman Sachs has been attempting to sever its ties with Apple. Several candidates are in the running to replace Goldman as the issuing bank for the card, on the list are Synchrony, Chase, Capital One, and American Express.
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