Visa and Amex in ‘Fierce’ Fight to Be New Apple Card Network
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As we’ve previously reported, Apple is looking for a new bank to issue its Apple Card, as it is ending its partnership with Goldman Sachs. Now, The Wall Street Journal reports that another battle is brewing, as Visa and American Express are vying to replace Mastercard as the Apple Card payment network.
While Mastercard is fighting to maintain its position, the other two major card networks are showing interest. Apple is reportedly looking for a new card network before it finally replaces Goldman Sachs as its card issuer. The big three have expressed interest in the deal, as the report says Visa is offering a $100 million upfront payment to Apple, and Amex is “in the mix” as Mastercard looks to hold onto its current role.
Mastercard has expressed interest in using its fintech, Finicity, which plugs into consumers’ bank accounts who opt in, to allow consumers to view their deposit-account balances within the Apple ecosystem, according to the WSJ‘s sources.
Barclays and Synchrony Financial have reportedly been involved in discussions to replace Goldman Sachs for the past several months. However, American Express could be the winner in both cases, becoming both the Apple Card issuer and the payment network for the credit card, thanks to its unique position in the financial world.
The Apple Card currently has over 12 million cardholders in the United States, with approximately $20 billion in outstanding balances.
Goldman Sachs and Mastercard have been the card issuer and payment network, respectively, since Apple Card’s 2019 launch. Goldman Sachs not only issues the Apple Card, it’s also teamed up with Apple for the high-yield Apple Card Savings Account. Apple has reportedly become dissatisfied with Goldman Sachs over the last few years due to customer service issues that have caused long wait times to resolve disputed transactions and savings account withdrawals.
The situation has grown so bad that the US Consumer Financial Protection Bureau launched an investigation into Goldman Sachs over the customer complaints, leaving both companies eager to divorce.
Although the launch of the Apple Card was termed the “most successful credit card launch ever” by Goldman CEO David Solomon, it didn’t take long for the relationship to sour. Some reports claimed that the Apple Card had cost Goldman Sachs over $1 billion during the first three years of the card’s operation.
Apple also insisted on some unusual terms in the deal, such as insisting that applicants who may have otherwise been turned down be approved. It also demanded that all Apple Card customers receive their statements on the first of the month, not on a rolling basis during the month, as is traditional in the credit card industry, creating customer service issues for Goldman Sachs.
Goldman Sachs has been looking to exit the consumer financial market for some time after facing billions of dollars in potential losses. In 2024, it handed over its General Motors credit card business to Barclays. GM credit card customers can earn reward points that can be redeemed to purchase new GM vehicles, including Chevrolets, Buicks, Cadillacs, and more. Barclays was agreeable to taking over the GM card deal as it’s interested in expanding its credit card footprint in the United States.
In January, we reported that talks with AMEX had reportedly stalled, likely due to the financial firm’s reluctance to tarnish its well-known AMEX brand by taking a secondary position to Apple in the partnership. However, today’s WSJ report suggests that AMEX has had a change of heart.
Apple will have some time to decide on a new payment network, as the Cupertino company’s contract with Mastercard doesn’t expire until sometime in 2026.
