Visa Offers $100 Million To Secure Apple Card Network In A Bid To Outdo Mastercard: Report – Apple (NASDAQ:AAPL), American Express (NYSE:AXP)

Visa Inc. V has reportedly proposed a $100 million payment to Apple Inc. AAPL to secure the Apple Card network. This move comes amid fierce competition among the country’s leading payment networks.

What Happened: Apple Card is up for grabs as Goldman Sachs Group Inc. GS, the bank currently backing it, plans to exit the consumer lending sector. Major banks such as JPMorgan Chase & Co. JPM and Synchrony Financial are vying to take over as the card issuer. Visa has stepped in with a $100 million bid to secure the Apple Card network,

Visa, Apple and Mastercard did not immediately respond to Benzinga’s request for comment.

Meanwhile, payment networks, including Visa Inc. and American Express Company AXP, are in a tight race to replace Mastercard Inc. MA as the network for the Apple Card. Apple Inc. is expected to choose a network for its card before selecting a bank to replace Goldman Sachs Group Inc. Visa Inc., the largest network, has made a bold bid to win the card, offering an upfront payment to Apple that is typically reserved for the largest card programs, according to a report by The Wall Street Journal.

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Mastercard Inc. is also making a strong effort to retain its role as the network for the Apple Card, exploring the use of its fintech, Finicity, to enable consumers to view their deposit-account balances within the Apple ecosystem.

Why It Matters: The Apple card program, with approximately $20 billion in balances, is one of the largest co-branded deals to change issuers. The network that secures this deal is expected to remain closely connected to Apple’s future payment efforts. Visa Inc. remains the undisputed scale leader in the payments industry, but Mastercard Inc. has been outpacing its rival in growth. This competition for the Apple card network could significantly impact the balance of power in the payments industry.

The outcome of this competition could have significant implications for the future of Apple’s payment efforts and the payments industry at large.

Visa holds a momentum rating of 89.49% and a quality rating of 81.30%, according to Benzinga’s Proprietary Edge Rankings. For an in-depth report on more stocks and insights into growth opportunities, sign up for Benzinga Edge.

Visa stock lost 1.13% to close at $346.35 on Tuesday. The stock has surged more than 25% over the past 6 months.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.