Visa offers Apple $100 million for MasterCard's replacement of the Apple Card

In the light of the upcoming changes in the Apple Card project, caused by the decision of Goldman Sachs bank to stop co-operation with Apple, a fierce struggle for the right to become the new payment system for this card has unfolded in the market. According to information published by The Wall Street Journal, Visa has offered Apple about $100 million to replace its current partner, MasterCard.

Here's What We Know

Since the launch of the Apple Card in 2019, it was supported by the bank Goldman Sachs, and MasterCard was the payment system. However, Goldman Sachs has decided to get out of consumer lending, which has led to a search for a new partner for Apple Card. The contenders include financial giants such as Visa, American Express and MasterCard.

Visa has expressed its willingness to pay Apple about $100 million as an upfront payment to secure the right to become the new payment system for the Apple Card. Such upfront payments are usually reserved for major credit card programmes, underscoring the strategic importance of this partnership for Visa.

American Express has also shown interest in the project, seeking to become both issuer and payment processor for the Apple Card. Goldman Sachs had previously been in talks with American Express about handing over the partnership, but no agreement was reached.

MasterCard, the current Apple Card partner, has been vigorously defending its position, discussing with Apple the prospects of launching a new Finicity platform and working with potential banking partners, which could ease the transition process.

Source: WSJ