Visa has made an aggressive $100 million bid to displace Mastercard as the payment network behind Apple’s credit card program, according to a Wall Street Journal report. The unusually large upfront offer—typically reserved for elite card partnerships—underscores the high-stakes battle for access to Apple’s financial ecosystem. The tech giant is simultaneously negotiating with major banks including JPMorgan Chase, Barclays, and Synchrony Financial to take over card issuance from Goldman Sachs, which is exiting the consumer credit business.
The bidding war highlights the growing value of embedded finance partnerships in the payments industry. American Express has also submitted a proposal to handle both network processing and card issuance for Apple, while Klarna recently secured its partnership with Walmart’s OnePay by offering $500 million in stock warrants. Visa’s offer reportedly includes revenue-sharing terms beyond the nine-figure upfront payment, reflecting the premium placed on Apple’s base of over 50 million cardholders.
Industry analysts note Apple holds exceptional leverage in these negotiations due to its loyal customer base and expanding financial services portfolio, which now includes high-yield savings accounts and buy-now-pay-later offerings. The outcome could reshape competitive dynamics in premium payments, particularly as Visa seeks to offset threats from real-time payment networks. A decision is expected by late 2024 as Apple finalizes its post-Goldman banking partnerships.