Visa offers roughly $100 million to take over Apple Card from Mastercard
The rear of the physical titanium Apple Card
Visa has reportedly proposed a payment of approximately $100 million to Apple in an effort to secure the company’s credit card, intensifying the competition among the nation’s leading payment networks to partner with the prestigious Apple Card.
AnnaMaria Andriotis for The Wall Street Journal:
The Apple card is up for grabs because Goldman Sachs, the bank behind it, is getting out of the consumer lending world. For months, big banks including JPMorgan Chase and Synchrony Financial have been vying to take over as issuer. What hasn’t been known is the equally fierce fight playing out between the networks to win Apple, with Visa and American Express trying to unseat Mastercard, according to people familiar with the matter.
Apple is expected to select a network for the card before it picks the bank to replace Goldman Sachs. Networks provide the plumbing that transmit information between the banks that issue consumers’ cards and the merchants’ banks.
Visa, the largest network, has made an aggressive pitch to win the card, including offering the kind of upfront payment to Apple that’s normally reserved for the biggest card programs, the people said.
pple is one of the biggest co-branded credit-card programs, and networks make money when more purchase volume is flowing over their rails. But there’s a much bigger picture with Apple. The tech giant is increasingly becoming the epicenter of many consumers’ daily payments and other financial habits.
MacDailyNews Take: Apple product and services users have money and the proven will to spend it, so it’s not surprise at all that Visa is willing to pay up big to service Apple Card.
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