Visa Battles Mastercard for the Right to Power Apple Card: A $100 Million Stakes War
A fierce battle is underway as Visa and American Express vie to become the new payment network for Apple Card, potentially replacing Mastercard in a high-stakes deal.
By Blip Tech
1 min read
Summary of the Article
Apple Card may be on the verge of switching its payment network provider from Mastercard to either Visa or American Express as Goldman Sachs prepares to exit its role as the card issuer.
- Current Situation: Goldman Sachs, the current issuer, has been looking to divest from Apple Card for some time. They initially set a timeline of 12 to 15 months in November 2023, which has now passed.
- Payment Network Battle: Visa and American Express are competing to become the new payment network provider.
- Visa: reportedly offered Apple around $100 million to secure the deal, a sum typically reserved for major clients like Costco.
- American Express: is vying for both the issuer and network roles, which could be an attractive proposition for Apple.
- Contract Constraints: Apple cannot switch from Mastercard until its current contract expires in 2026. However, negotiations are likely ongoing to determine who will take over once the shift occurs.
- Timeline: While no official announcements have been made, the transition is expected to happen soon due to Goldman Sachs' eagerness to exit the partnership.
The final decision on both the new issuer and payment network provider could take several months to finalize.
