Banks competing to take Goldman Sachs’ place as the Apple Card issuing bank
Visa has offered Apple a roughly US$100 million payment to get the tech giant’s credit card, part of a battle between the country’s biggest payment networks for the Apple card, according to The Wall Street Journal.
The Apple card is up for grabs because Goldman Sachs, the current bank behind Apple Card, is exiting the consumer lending world. For months, such banks as JP Morgan Chase and Synchrony Financial have worked to take Goldman Sachs’ place, the WSJ says.
Also, when it comes to the Apple Card’s issuing bank, the competition is intense. In addition to Visa, American Express is “in the mix” and Mastercard is “fiercely trying” to retain its role, according to the WSJ.
In January, it was reported that the Apple/Goldman Sachs partnership which began on 2019, was on its last legs.
“We have a contract with Apple to run that partnership until 2030, although there’s some possibility that it won’t continue until that time frame,” Solomon told analysts on an earnings call tag the time. The Apple card dragged down Goldman’s return on equity by 75 to 100 basis points last year, but “that will improve in 2025 and 2026,” he said.
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