Apple will be replacing Goldman Sachs as the issuer of its credit card
of ConsumerAffairsIn brief:
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Visa has offered Apple $100 millionto become the new network behind the Apple Card, as Apple prepares to replace Goldman Sachs as its issuing bank.
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Mastercard, Visa, and American Expressare in a heated competition to power the high-profile card, which has around$20 billion in balancesand deep integration with Apples payment ecosystem.
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Apple is expected tochoose a network before selecting a new bank, with the outcome potentially shaping the future of its expanding financial services.
Details
If you have an Apple Card, you may soon see a Visa orAmerican Express logo where the MasterCard logo is right now. That's because ahigh-stakes battle is underway between the nations largest payment networks for control of one of the most coveted cards in consumer finance: theApple Card.
WithGoldman Sachsstepping away from consumer lending and looking to exit its role as theApple Card issuer, a scramble has emerged among big-name financial institutions to take its place. But behind the scenes, a parallel and equally fierce competition is unfolding amongpayment networksVisa,Mastercard, andAmerican Expresseach jockeying to power the cards transactions.
According to sources quoted in a Wall Street Journal report, Visahas made a bold move by offeringApple a roughly $100 million upfront paymentin a bid to wrest the Apple Card network partnership away fromMastercard, which currently operates the network for the sleek titanium card. That type of payment is typically reserved for the largest and most lucrative co-branded card deals.
A card worth fighting for
Launched in 2019, theApple Cardhas become one of thebiggest co-branded credit card programsin the U.S., with about$20 billion in balances. It has long been seen not just as a financial product, but as a key to Apples broader ambitions in consumer finance. Its integration with the iPhone Wallet app has made it a central part of the daily financial habits of millions of Apple users.
Whoever wins the Apple Card deal gets more than just transaction volume they get a front-row seat to Apples growing influence in payments, said one person familiar with the negotiations.
Payment networksearn feeswhen purchases run over their rails, and Apples card sees high transaction volume. But more strategically, the card ties directly into Apples broader ecosystem of digital payments, personal finance features, and potential future banking tools.
Whos competing?
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Visa, the worlds largest payment network, is aggressively bidding with an offer Apple hasnt seen since Costco chose its network a decade ago.
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American Expressis also making a play, reportedly aiming to become both theissuerandnetworkfor the Apple Card a model it already uses for its own cards.
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Mastercard, the current network partner, is fighting toretain its role, and has explored leveraging its fintech platformFinicityto expand Apples capabilities, such as letting users view their bank account balances directly within Apples system.
Apple is expected toselect a new network partner before choosing the next card-issuing bank. Leading contenders for the issuer role includeJPMorgan ChaseandSynchrony Financial, both of which have extensive experience managing large co-branded portfolios.
Goldmans Exit
The reshuffling stems fromGoldman Sachs decision to retreat from consumer lending, including the Apple Card and its broader Marcus initiative. Talks to hand off the Apple Card have been ongoing since at least early 2023.
A final decision by Apple is expected in the coming months. Whatever the outcome, the winner will gain more than a credit card theyll gain a strategic foothold in the evolving world ofApple-led consumer finance.
Posted: 2025-04-02 15:04:19
