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Highlights Visa, Mastercard, and American Express are fighting it out to power the Apple Card. Goldman Sachs is to exit its partnership with Apple. Visa offered Apple $100 million upfront, Amex aims to take over both issuer and network roles, while Mastercard is determined to retain its position. Caption - Goldman Sachs is expected to exit its partnership with Apple. (Image credit - Apple) A major showdown is unfolding between Visa, Mastercard and American Express as we speak. According to a recent report from The Wall Street Journal, Visa, Mastercard, and American Express are competing to become the payment network for Apple Card. For those of you who aren’t aware, Goldman Sachs backs the Apple Card as of now. Meanwhile, Mastercard handles payment processing, facilitating transactions between merchants and the bank. However, Goldman Sachs is looking to exit its deal with Apple after reportedly losing billions on the partnership. Before Apple picks a new banking partner, it first needs to decide which network will power the Apple Card. Visa VS Amex VS Mastercard Visa has reportedly made an “aggressive pitch” to replace Mastercard and has offered Apple a $100 million upfront payment, a deal that’s “normally reserved for the biggest card programs.” Meanwhile, American Express is trying to take over both roles by becoming both the issuer and network of the Apple Card, replacing Goldman Sachs and Mastercard in one move. Mastercard, however, is not stepping aside. The report states that it is “fiercely trying to keep its role as the network.” The report highlights how banks and payment networks have had a complicated relationship with Apple. “Big banks and networks for years have been wary of Apple’s ambitions and have developed a frenemy relationship, taking steps to keep the tech giant from making more inroads in consumer finance, while seeking to be close to Apple. The network that locks in this deal is expecting to stay close to Apple’s future payments efforts.” The report further adds, “Mastercard, for example, has explored using its fintech, Finicity, which has software that plugs into consumers’ bank accounts with their permission, to enable consumers to see their deposit-account balances within the Apple ecosystem, according to people familiar with the matter.” Goldman Sachs has been trying to exit its Apple partnership since at least November 2023. Several banks, including Synchrony, Chase, Capital One and American Express, are in the race to replace it. FAQs Q1. Why is there competition to power the Apple Card? Answer. Goldman Sachs plans to exit its partnership with Apple due to reported losses, prompting Visa, Mastercard, and American Express to compete for the role of payment network. Q2. What offers have Visa, Amex, and Mastercard made? Answer. Visa offered $100 million upfront, Amex proposed taking over both issuer and network roles, and Mastercard is fiercely trying to retain its current position. Q3. How have banks and networks historically interacted with Apple? Answer. Banks and payment networks have a cautious yet close relationship with Apple, balancing its growing ambitions in consumer finance with their need to stay connected. Also Read: Apple Card Offers Up to $300 Sign-Up Bonus – Limited Period Deal Also Read: Mastercard Collaborates with boAt to Enable Tap-and-Pay Functionality on Wearables

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Visa, Amex and Mastercard Compete To Power the Apple Card