A competitive landscape is emerging as various companies aim to stake their claim in the Apple Card ecosystem. A recent report from The Wall Street Journal indicates that Visa, Mastercard, and American Express are all in discussions to become the payment network for the Apple Card…
To recap, Goldman Sachs is the current financial institution supporting the Apple Card, with Mastercard functioning as the payment network that facilitates transactions between the bank and merchants. Previous reports have suggested that Goldman Sachs is seeking to exit its partnership with Apple due to significant financial losses associated with the venture.
However, before Apple can appoint a new bank to succeed Goldman Sachs, it first needs to decide on a payment network for the Apple Card.
The latest report from The Wall Street Journal (exclusive to Apple News+) reveals that both Visa and American Express are “attempting to displace Mastercard” as the payment network for Apple Card. Visa is reportedly making a strong case to secure the Apple Card business, bolstered by a proposed $100 million “upfront payment to Apple,” which is typically reserved for major card programs.
In addition, American Express is pushing for the dual role of both issuer and network for the Apple Card, aiming to take over from both Goldman Sachs and Mastercard.
On the other hand, Mastercard is not resigning without resistance and is “intensely working to retain its role as the network,” according to the report. Mastercard has also considered integrating its Finicity platform with the Apple ecosystem:
Major banks and networks have historically been cautious of Apple’s ambitions and have fostered a frenemy dynamic, trying to limit the tech giant’s influence in consumer finance while simultaneously seeking closer ties with Apple.
The network that secures this arrangement is anticipated to maintain a close relationship with Apple’s future payment initiatives.
For instance, Mastercard has been exploring the use of its fintech platform, Finicity, which offers software that connects to consumers’ bank accounts with their consent, enabling them to view their deposit account balances within the Apple ecosystem, according to insiders.
Goldman Sachs has been pursuing an exit from its collaboration with Apple since at least November 2023. A range of potential partners are competing to take over from Goldman as the backing bank for the card, including Synchrony, Chase, Capital One, and American Express.
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