Visa woos Apple with $100 million to replace Mastercard as Apple Card partner

Visa has offered Apple about $100 million to take over as the payment network for the Apple Card, unseating the current provider, Mastercard, as first reported by The Wall Street Journal. 

The proposal, which reflects the high stakes in the competition among payment networks, comes as Apple seeks to reshape its credit card program following Goldman Sachs’ planned exit as the issuing bank. 

American Express is equally in the race, vying to replace Mastercard, while Mastercard is fiercely defending its position, highlighting a heated battle in the financial services sector.

The Apple Card, launched in 2019 in partnership with Goldman Sachs and Mastercard, has grown into a significant player in the consumer credit market, boasting millions of users and over $17 billion in outstanding balances. However, Goldman Sachs, which entered the consumer banking space with ambitions to diversify beyond its traditional investment banking roots, has faced substantial losses, running into billions of dollars, prompting its decision to scale back retail operations by late 2022.

Since November 2023, Goldman has been seeking an exit from its Apple partnership, originally set to extend through 2029, triggering a scramble among banks and payment firms to fill the void.

Visa eyes Apple’s vast user base to deepen its dominance 

Visa’s $100 million offer is described as an upfront payment typically reserved for top-tier card programmes, underscoring the strategic importance of the Apple Card deal. As the world’s largest payment network, Visa aims to leverage Apple’s vast user base to deepen its market dominance.

Meanwhile, American Express is pursuing a dual role as both issuer and network, a proposition it explored with Goldman Sachs in 2023. Mastercard, unwilling to relinquish its role, is countering it with efforts to integrate its Finicity platform, a fintech tool that connects to consumers’ bank accounts, into Apple’s ecosystem, aiming to enhance user experience and retain its foothold.

The selection of a new payment network is a critical step for Apple, preceding its choice of a replacement bank for Goldman Sachs. Several major institutions, including JPMorgan Chase, Barclays, and Synchrony Financial, have been in talks with Apple since early 2024 to take over as the issuer. JPMorgan, the largest U.S. bank by assets, is reportedly negotiating to acquire the card’s balances at less than full face value and adjust billing terms, a flexibility Apple has signalled it might accept. These discussions remain fluid, with no deal finalised as of April 2, 2025.

For Apple, the transition offers an opportunity to strengthen its foothold in financial services, a sector it has steadily expanded into with Apple Pay and related offerings. The company has historically balanced cooperation and competition with banks and networks, securing concessions like the ability to choose which issuers join Apple Pay, a rarity in an industry where Visa and Mastercard typically mandate universal acceptance. 

The Apple Card’s appeal lies in its seamless integration with the iPhone, offering features like Daily Cash rewards and no fees, which have driven its popularity among tech-savvy consumers.

The competition among Visa, Mastercard, and American Express reflects broader tensions in the payments industry, where Apple’s growing influence has long been a double-edged sword. Banks and networks value the partnership for access to Apple’s ecosystem but remain wary of its potential to disrupt traditional finance. Visa’s bid, if successful, could signal a shift in power dynamics, while a Mastercard retention or an American Express win would reinforce existing alliances. 

As negotiations continue, the outcome will shape not only the Apple Card’s future but also the broader digital payments ecosystem, with implications for consumers, banks, and networks alike.