Visa has reportedly offered Apple approximately $100 million to take over the tech giant’s credit card partnership from Mastercard. According to the Wall Street Journal, this is a significant move aimed at securing the Apple Card, involving an upfront payment typically associated with the largest card programs.
American Express is also competing to replace Mastercard, seeking to become both the issuer and the network for the Apple Card, as indicated by sources in the report.
Apple is believed to have engaged in discussions with JPMorgan, Barclays, and Synchrony Financial about taking over its credit card program from Goldman Sachs, which is looking to divest its consumer portfolio.
Such financial inducements, like Visa’s offer, are becoming increasingly common as fintech companies vie for a place in important transactional ecosystems. For example, Klarna is reported to have offered Walmart 15.3 million warrants convertible into Klarna stock, valued at $500 million, to secure its recent deal as a BNPL provider for Walmart’s fintech arm, OnePay.