SAN FRANCISCO—Visa has reportedly proposed an offer of around $100 million to Apple, seeking to capture the tech giant's credit card business, currently managed by Mastercard, PYMNTS reported.
This move comes amid the intense competition between payment networks, with American Express also vying for the Apple card business, and Mastercard working diligently to retain it, according to The Wall Street Journal (WSJ), citing unnamed sources.
When approached by PYMNTS, a Visa spokesperson declined to comment on rumors or speculation, PYMNTS said.
Apple's card business is in flux as Goldman Sachs, the bank behind it, is exiting the consumer lending sector. Apple is prioritizing the selection of a new payment network before choosing a new banking partner, PYMNTS said.
The strong competition for Apple’s card business stems from the fact that Apple hosts one of the largest co-branded credit card programs, boasting approximately $20 billion in balances. Furthermore, the company is increasingly integral to consumers' payments and other financial activities, PYMNTS explained.
Launched in 2019 in collaboration with Goldman Sachs and Mastercard, Apple’s credit card featured no fees, daily cash-back rewards, and the convenience of signing up via an iPhone in the Wallet app and receiving the card instantly on the phone.
In July 2023, reports surfaced that Goldman Sachs' partnership with Apple was nearing its end, with Goldman in discussions with American Express to assume the credit card and other joint projects with Apple. Goldman Sachs had announced plans in late 2022 to reduce its consumer banking services, although its agreement with Apple remained unaffected at the time, PYMNTS explained.
In January, it was reported that Apple was in negotiations with Barclays and Synchrony Financial to replace Goldman Sachs as the bank for its credit card business, PYMNTS noted.