Visa has reportedly offered Apple around $100m to replace Mastercard as the tech company’s credit card partner.
The Wall Street Journal reported that Visa’s bid seeks to secure the Apple Card, which is a key part of Apple’s growing financial services portfolio, as a predominant physical card amongst users.
If successful, this deal would mark a significant shift in the credit card industry, as Mastercard has been Apple’s partner for the card since its launch in 2019.
The partnership that launched the Apple Card originally included Mastercard as the payment processor, with a deal intending to run through 2030.
However, the relationship between Goldman Sachs and Apple faced challenges last October when both companies were fined $89m by the Consumer Financial Protection Bureau (CFPB) for misleading customers and failing in customer service.
The CFPB’s investigation revealed that Apple neglected to forward tens of thousands of customer disputes regarding Apple Card transactions to Goldman Sachs. Additionally, when disputes were eventually sent, Goldman Sachs failed to meet several federal requirements while investigating them.
Given the strained relationship between Apple and Goldman Sachs, many top financial institutions have expressed interest in partnering with the tech giant.
JP Morgan Chase has been in talks with Apple since last year to replace Goldman Sachs, and more recently, Barclays Bank from the UK has also shown interest in collaborating with the company.
If Barclays secures the partnership, it wouldn’t be its first time replacing Goldman Sachs. Starting this summer, Barclays will become the exclusive issuer of the GM Rewards Mastercard and GM Business Mastercard in the US.
Visa is yet to comment on the reports.
