Investing.com -- On Tuesday, Visa (NYSE: V ) made a significant move to secure its position in the competitive payment network industry by offering Apple (NASDAQ: AAPL ) approximately $100 million. The bid is an attempt to replace Mastercard (NYSE: MA ) as the network for the Apple credit card, according to The Wall Street Journal, citing people familiar with the matter.
This effort comes as Goldman Sachs, the current bank supporting the Apple card, plans to exit the consumer lending sector. Visa’s proposition is part of a larger contest among leading payment networks, which also includes American Express (NYSE: AXP ), to win over the lucrative partnership with Apple.
The Apple card has become a coveted asset, with major banks such as JPMorgan Chase (NYSE: JPM ) and Synchrony Financial (NYSE: SYF ) already in the race to become the new issuer. However, the battle for the network side of the operation has been just as intense. Visa, being the largest network, has made an aggressive offer that includes the type of upfront payment typically reserved for top-tier card programs.
American Express is also pursuing a dual role in this deal, aiming to be both the issuer and network for the Apple card. In 2023, Goldman Sachs reached out to American Express to explore their interest in taking over the card, signaling the potential for significant changes in the card’s operation.
Meanwhile, Mastercard is not stepping down without a fight, as it actively seeks to retain its position as the network for the Apple card, according to the unnamed sources.
The networks are essential components of the payment process, facilitating the transmission of information between the banks that issue consumer cards and the banks of merchants. The selection of a network by Apple is anticipated to precede the choice of a bank to replace Goldman Sachs, highlighting the importance of this decision in the financial industry.
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