Goldman Sachs (NYSE:GS), the partner powering the Apple Card, has wanted to exit its relationship with Apple (NASDAQ:AAPL) for quite some time now.
Several years back, Goldman had big aspirations to utilize technology and leverage in-house expertise to power the future of mass financial services. But things didn’t go as planned, and the world’s most prominent investment bank slammed on the brakes and put its brand in reverse—a process that has taken a long time to accomplish.
Working with Apple, a well-respected global tech brand, was Goldman’s pinnacle achievement in many respects of its Fintech venture. While the Apple Card continues to be a popular credit product within the Apple Wallet, a new partner has yet to emerge to support the product.
Today, we have some more insight into the machinations of a possible deal for the Apple Card service as WSJ.com is reporting that big banks and big credit networks are vying to take over the credit card.
According to the report, Visa and American Express are trying to usurp Mastercard, the current payment rails for the Apple Card. Big banks like JP Morgan Chase and Synchrony Financial also would like a shot at managing the product. Visa is said to have offered $100 million to sweeten the deal.
Apple is said to want to select a network before it picks the bank to power its digital/physical card. Mastercard is reportedly working to keep Apple within its own perimeter.
While Apple is a bit abstemious about the performance of the Apple Card, the report states there is approximately $20 billion in balances associated with the card.
The Apple Card benefits from its user-friendly approach and cash back program. Management of the card all happens on the iPhone, as smartphones are quickly becoming ground zero for all financial services. Alongside credit, Apple also offers BNPL, savings, and other features. While it hasn’t yet tiptoed directly into crypto, the change in the administration and support of digital assets may compel Apple to enable services like stablecoins and other products as demand grows from its users. This could play a role in the decision-making process, and a leak from a person “familiar with the matter” may mean a deal is nearly in hand.