Visa has made a bold move by offering Apple approximately $100 million to take over the tech giant’s credit card partnership from Mastercard, according to a report on Tuesday.  This offer comes as Goldman Sachs, the current issuer of the Apple Card, plans to exit the consumer lending market, creating an opportunity for new partnerships.

The battle for the Apple card partnership

The Apple Card launched in 2019 with Mastercard as the payment processor and Goldman Sachs as the issuer, and it has become a coveted financial partnership.

Visa’s offer is part of an intense rivalry among payment networks, with American Express also vying to unseat Mastercard. American Express is looking to become both the issuer and network for the Apple Card, a move that would further integrate it into Apple’s financial services ecosystem.

As Visa’s offer highlights, the competition is fierce, with the payment network giant making a bold push to secure the partnership. “The network that locks in this deal is expecting to stay close to Apple’s future payments efforts,” as seen in a media report.

Mastercard, however, is not giving up without a fight and is exploring ways to maintain its relationship with Apple, potentially using its fintech subsidiary Finicity to enhance consumer banking experiences within the Apple ecosystem.

The impact of Goldman Sachs’ exit

Goldman Sachs’ decision to exit consumer lending has opened the door for several financial institutions to compete for the role of issuer. JPMorgan Chase, Synchrony Financial, and Barclays are among those interested in partnering with Apple.

The Apple Card program holds approximately $20 billion in balances, making it one of the largest co-branded credit card deals set to change issuers. Visa’s offer of $100 million underscores the strategic importance of securing this partnership, as it would position the winning network at the heart of Apple’s financial services portfolio.

Visa declined to comment on the reports, maintaining a strategic silence as the negotiations unfold. The outcome of this competition will be closely watched as it reflects the evolving dynamics between tech giants and financial institutions in the digital payments sector.

Edited.