Visa Wants to Take Over $20 Billion Apple Card Business

Visa has reportedly offered to hand over $100 million to Apple in order to take over payment processing for its credit card, replacing Mastercard. The offer comes as Apple is in the process of replacing Goldman Sachs as the issuing bank of Apple Card after that company decided to get out of the consumer lending business. The offer was reported on Tuesday by the Wall Street Journal, which says that American Express is among others trying to win the deal; Mastercard is trying to retain the business. Credit card processors like Visa and Mastercard communicate transactions between the bank of the customer and the retailer and take a small cut of each transaction. Visa previously threw out cash to become the payment processor for Costco’s credit card. Apple introduced its credit card back in 2019 as a way to increase loyalty and generate a new stream of revenue. It does this by taking a cut of those transaction fees as well as slicing off a portion of earnings from the high-yield savings ... Read full article.