Advertiser Disclosure

Visa Offers $100 Million for Apple Card Business

ElitePersonalFinance

Last Update: April 3, 2025 • Financial News •

This week, credit card giant Visa offered Apple close to $100M dollars to seize its credit card business from MasterCard.

According to a Wall Street Journal report, Visa, American Express, and MasterCard are all vying to take over the network on Apple’s credit card. One of the main reasons for the switch is Goldman Sachs’s exit from the consumer lending sector, where they are now looking to fill the void by acting as its payment network.

In addition, other financial firms are looking to replace Goldman Sachs, with Barclays, JP Morgan Chase, and Synchrony Financial engaged in recent talks. With millions of users already tapped into the Apple ecosystem, any financial institution that signs on can automatically take advantage of its high-spending customer base to benefit from several revenue streams, including interchange fees for every transaction, interest charges on carrying balances, and funding loans for installment plans, getting a cut of sales.

Plus, there’s also the opportunity for partnerships and co-branding benefits.

At the moment, the Apple card has roughly 20 billion in balances, which makes it very appealing for any financial institution or payment processor looking to expand its credit portfolio.

How is the Apple Card Different?

One of the main draws of the Apple card is exclusivity.

Here are several reasons why the Apple card resonates so heavily:

Integrated with Apple’s Ecosystem (Wallet, iCloud, Apple ID): One of the main draws of the Apple card is a seamless integration with Apple’s ecosystem. Unlike standard Visa or MasterCard credit cards, your Apple card is tied to your iPhone’s Wallet app, meaning it takes less than 5 minutes from the application to set up. You no longer need to wait for a physical card to arrive in the mail. Plus, if you have ever switched to a new Apple device, your card automatically transfers via the Wallet app, making it very convenient.

Contactless Transactions: Although a physical titanium card is available, the Apple card is best used for contactless transactions. You no longer need to have a physical card as your primary payment method.

iOS Budgeting: If you’re a stickler for organization, one of the best things about the Apple card is that its spending insights are built directly into the iOS ecosystem with real-time transaction tracking across different categories, weekly and monthly spending summaries, and payment recommendations that show how your balance affects the interest you’ll pay. Traditional credit card apps or third-party budgeting tools rarely offer this sort of flexibility.

Daily Cash Rewards: One of the best things about the Apple card is its point-based reward system, where you can earn points that can be redeemed for things like gift cards and credits. Plus, it offers a Daily Cash program where you can benefit from 3% back on Apple purchases from select partners, 2% back on purchases made with Apple Pay, and 1% back on purchases made using the physical Apple Card.

Apple Pay Later: Much like Buy Now, Pay Later services like Klarna and Affirm, Apple has expanded into the business with its own installment offerings, allowing users to split purchases into payments. This is a big win from the traditional revolving credit model the aforementioned competitors offer.

Privacy and Security: Another competitive advantage that Apple Card enjoys is its privacy and security. Its fine print clearly states that transaction data is not sold or shared, with heavy use of Face ID and tokenized transactions to ensure that our information is protected.

No Fees: Its number one benefit is that Apple’s card does not charge annual, late payments, insurance sections, or penalty interest rates. However, your standard premium-level credit card, like the Chase Sapphire Preferred, may include most of these fees.

Keep in mind that Visa and MasterCard credit cards typically work independently and not as part of any ecosystem. As a result, there’s an overreliance on physical cards, using separate banking apps, and conducting manual account transfers.

What Other Partnerships Throughout the Years Generated This Much Attention?

No shortage of partnerships has generated this much attention.

In 2021, Amazon agreed to a massive deal with Venmo, determining how long it will take to become a payment method at checkout, taking advantage of PayPal’s massive user database. The deal’s benefits to both parties were evident, as it expanded payment options for Amazon and allowed access to Amazon’s enormous customer base for PayPal and Federal.

Similar agreements were struck between Square (formerly known as Block) and Afterpay with a 2021 acquisition for its buy now, pay later (BNPL) 429 billion, as well as MasterCard and Samsung Pay to work towards contactless payment solutions, targeting competitors Apple Pay and Google Pay.

Let’s not forget about Chase and the DoorDash Rewards Mastercard, which offers cash back on restaurant orders while attracting frequent food delivery users into Chase’s credit ecosystem. However, none of this pales in comparison to Apple and Goldman Sachs. Since starting its partnership in 2019, it has paid tremendous dividends for both parties by allowing you to benefit from interest payments, transactions, and further expansion of Apple’s financial services via Apple Pay.

In short, the financial firm and payment processor that wins the Apple Card deal will get a massive credit card portfolio and arguably the world’s number one digital payment ecosystem.

0 Shares

MEET THE AUTHOR

ElitePersonalFinance

Profile

Recent posts

Trump Finally Announces Tariffs: Chaos Ensues

Visa Offers $100 Million for Apple Card Business

‘Liberation Day” and Trump Tariff News

How TikTok Taught Me to Save $5,000 in 5 Months (That Worked!)

United Airlines Changing Their Card and Perks Policies

Recommended Articles

Debt

Trump Finally Announces Tariffs: Chaos Ensues

EPF April 4, 2025

Debt

Visa Offers $100 Million for Apple Card Business

EPF April 3, 2025

Debt

‘Liberation Day” and Trump Tariff News

EPF April 2, 2025

AS SEEN ON