Visa and American Express Vying to Win Apple Card Deal in 'Fierce' Fight

[MacRumors]

Visa wants to pay Apple approximately $100 million to be the new payment network for the Apple Card, reports The Wall Street Journal. As of right now, the Apple Card is on the Mastercard payment network, but that is set to change because Apple is ending its partnership with Goldman Sachs.

Both American Express and Visa are vying to replace Mastercard as Apple's card services provider, while Mastercard is aiming to retain its position. Apple apparently plans to choose a new Apple Card network before it selects a partner to replace Goldman Sachs as the Apple Card's issuing bank, and competition is intense. Visa is offering Apple a $100 million upfront payment, while American Express is "in the mix" and Mastercard is "fiercely trying" to retain its role.

Apple and Goldman Sachs have been working to dissolve their partnership since 2023, with Goldman Sachs planning to exit the consumer banking market. JPMorgan Chase and Synchrony Financial are in talks with Apple to take over for Goldman Sachs, but American Express has also been aiming to become the issuer and network of the Apple Card. Apple needs both an issuing bank for the Apple Card and a payment network that facilitates transactions.

Goldman Sachs and Apple have worked together on the Apple Card since its 2019 launch, and have also teamed up for the high-yield Apple Savings account. Apple has not been happy with Goldman Sachs because of customer service issues caused by long wait times for disputed Apple Card transactions and savings account withdrawals.

The U.S. Consumer Financial Protection Bureau even launched an investigation into Goldman Sachs due to the customer complaints, which led to tension, so both companies are eager to end their relationship.

The Apple Card has over 12 million users in the United States, with approximately $20 billion in balances.

Article Link: Visa and American Express Vying to Win Apple Card Deal in 'Fierce' Fight

 

[PhoenixDown]

I wouldn't mind AMEX personally but Visa definitely has better international coverage.

 

[coreysandler]

Hoping Visa wins this one. Will be finally able to use my card at Costco.

 

[c84216]

The Apple Card is my favorite card I have. Sure the cash back percentages aren't always the best, but the data/record keeping and ease of accessing the cash back are second to none. And no doofy app to deal with. The UI is top notch. And I like the physical card having no number printed on it AND the rotating CVV. Plus I know I'll get a minimum 2% if tap to pay is accepted. Just A+ experience all around. I hope whatever happens doesn't botch it.

 

[dominiongamma]

Hoping Visa wins this one. Will be finally able to use my card at Costco.

You have a great point and I did not think about that because I always wanted to shop there and did not have a visa credit card lol

 

[alexandr]

I wouldn't mind AMEX personally but Visa definitely has better international coverage.

Yea, the switch to AMEX would effectively ruin using it abroad.

 

[Blackstick]

Already have a Prime Visa and an Amex Blue cash preferred, would prefer it stays on Master but Visa wouldn't be the end of the world because Costco.

 

[Sneakz]

Amex would probably mean a much faster international launch. You know, the rest of the world woukd like an Apple Card too.

 

[sw1tcher]

Waiting for Capital One to swoop in from nowhere to win the deal. They are buying Discover Financial so they could act as both the payment network and the issuing bank. Capital One also could easily take over the Apple Savings account.

For those wondering, Discover Card is actually accepted at slightly more places around the world and in the U.S. than American Express according to WalletHub

Discover and American Express also have lower acceptance rates than the other networks, although Discover holds the edge over Amex in that regard. Discover is accepted at 10.64 million U.S. merchant locations and in more than 200 countries. American Express lags behind at 10.6 million and 160+, respectively.

and NerdWallet

 

[cuiver]

You have a great point and I did not think about that because I always wanted to shop there and did not have a visa credit card lol

You can use any debit card, only credit cards are limited to VISA. I use the PayPal's MasterCard debit card to pay at Costco and recoup 5% in cashback in the groceries category (https://www.paypal.com/us/digital-wallet/manage-money/paypal-debit-card).

 

[sw1tcher]

Hoping Visa wins this one. Will be finally able to use my card at Costco.

You have a great point and I did not think about that because I always wanted to shop there and did not have a visa credit card lol

1) Join Costco (optional)
2) Buy Costco Shop Card online with Visa, Mastercard or Discover Card (no American Express) or have a Costco member buy it for you if you choose not to be a Costco member
3) Use Costco Shop Card to pay for in-store, food court, and fuel purchases

 

[10anta]

I would care, but Apple Card isn't available in the UK.

AMEX struggles to make it in European markets already due to their ridiculous retailer transaction fees - a partnership with them would mean we're years away from anything that would have any significant market share.

 

[Spokeyourname]

I use my platinum amex for just about everything, and use my Apple Card when I'm somewhere amex isn't accepted. A lot of the smaller stores, my wife's nail salon, and international locations don't like AMEX. They have the highest fee to the retailer. So hoping visa wins this one or I'll most likely never use my Apple Card again.

 

[CalMin]

Funny that Visa and Amex are fighting over a business that Goldman Sachs is trying to get out of!

I wouldn't mind AMEX personally but Visa definitely has better international coverage.

110% agree. Amex basically doesn't work well outside the US except at major retailers or hotels. Even within the US, the number of vendors and restaurants that are refusing to accept the card is increasing.

 

[Hajj.david]

I hope AMEX wins it. Their customer support is A1 and they have the best card designs, points, and rewards.

 

[ipedro]

I hope that means it'll go worldwide. Canadian AMEX and VISA customer right here waiting to switch to Apple Card on day one.

 

[gsmornot]

Hoping Visa wins this one. Will be finally able to use my card at Costco.

I dont recommend people have too many cards but the Costco card is one I carry. 5% back on gas, plus additional cash back in the store plus you still get cash back from the Costco membership. There is other cash back but I dont recall from memory. I only use mine for Costco shopping and gas, have it added to my app to pay and the pump and maximize my annual return. Past that, yes a Visa deal would be good so it's an option.

 

[DblHelix]

Funny that Visa and Amex are fighting over a business that Goldman Sachs is trying to get out of!



110% agree. Amex basically doesn't work well outside the US except at major retailers or hotels. Even within the US, the number of vendors and restaurants that are refusing to accept the card is increasing.

What countries have low Amex acceptance. I’ve never had an issue with it travel internationally 3-4 times a year. Most recently used Amex at a doner shop in Barcelona.

 

[GMShadow]

Funny that Visa and Amex are fighting over a business that Goldman Sachs is trying to get out of!

Goldman's issue is that they only have the Apple Card and the GM card, tried to do both on the cheap, and it bit them in the butt. JPM, Amex, and Synchrony already have all the infrastructure in place to support hundreds of other cards, so there's not really a lot of extra setup required to add one more.


Unrelated but something I'm curious about - if the issuing bank changes, might some people get limit adjustments based on the new issuer's own criteria?

 

[dandyryan]

i want it to stay USA only. it won't be special if everyone else has it

 

[211]

Internationally, I don’t think the payment network will make much of a difference. American Express is accepted in a lot of places, just nowhere near as wide a coverage as VISA or MasterCard. It does have prestige that Apple may care about, or it could just be about the money.

What really will impact an international rollout is the issuing bank. Goldman Sachs never had an international consumer presence. Apple hopefully will work with a more global bank, like HSBC, Barclays, JP Morgan Chase, Capital One or Citi

 

[stevefeinstein]

I haven't had an AmEx since CostCo switched to Visa. But back when I did, I recall there were a lot of places that wouldn't accept it because they supposedly had higher fees. Is that still the case? If it is it would immediately make it less useful than either MasterCard, or Visa.

 

[jz0309]

Sure hope Visa will win this.

 

[mwhite]

Dear God, not Amex. This card needs robust international acceptance. If it doesn’t stay with Mastercard, let it be Visa.

 

[tgwaste]

Visa will win because no one cares or wants to use amex and Apple knows it.