Visa wants to take more than $ 20 billion for Apple Card cards

According to what VISA offered a delivery of more than $ 100 million to Apple in order to take care of its credit card, to replace MasterCard. The offer comes as Apple is in the process of replacing the Goldman Sachs as Apple Bank. The source after that company decided to get out of consumer lending work.

The offer was reported on Tuesday Wall Street JournalWhat says is from others trying to win the deal; MasterCard tries to keep business. Credit cards such as Visa and MasterCard connects transactions between the customer bank and retail dealers and take small pieces of each treatment. Visa has been previously cash to become a Costco credit card processor.

Apple provided its credit card in 2019 as a way to increase loyalty and generate a new stream of revenue. It does this by taking a set of these transactions fees in addition to cutting a portion of profits from the high -yield savings accounts it provides through Goldman. According to Goldman, Goldman decided to end her relationship with Apple because she was bleeding the money by offering the card to customers who have low credit grades, something she requested Apple. He was also unable to impose annual Apple card fees, something that many distinguished credit cards come these days. Goldman was desperate to enter consumer lending during the epidemic, and Apple mainly raised the bank.

However, the Wsj Reports that Apple Card customers carry $ 20 billion in balances, indicating that those who take care of the work can get a lot of money if they can manage it better than Goldman.

Financial companies are also concerned that Apple can reduce them from working if they decide to control more payments; Apple traditionally loves to control every aspect of its products:

But there is a much larger picture with Apple. The technology giant is increasingly centered for many daily payments for consumers and other financial customs. Large banks and networks were careful years of Apple’s aspirations and have developed a Frenemy relationship, taking steps to maintain the technology giant made by making More note in consumer financingWhile seeking to be close to Apple.

The network that closes this deal expects to stay close to the efforts of the future payments of Apple.

Late last year, Apple and Goldman were subjected to 89 million dollars fine From the Consumer Protection Office on the problems related to the operation of the Apple card, including support for weak customers and unclear conditions for zero interest financing deals on the purchases of the elements from the Apple website. CFPB reported that card holders assumed that all purchases from Apple.com that were performed using the card were eligible to obtain zero financing, in fact card holders needed to use Safari browser and select a specific option when getting out of the deal.

Apple credit card is a good product, but there are other credit cards in the market that provide better advantages – and do not require card holders to use iPhone. Apple forces customers to use Apple Pay in order to obtain 2 % cash recovery on spending (Select Merchants offer 3 %); The use of the physical card earns only 1 % cash recovery. The card also does not provide advantages for other cards, such as buying purchase or accessing exclusive halls.

The fact of the matter is that there are many other credit cards that provide the same accurate cash recovery as the Apple card in addition to other benefits and do not leave users closed in the environmental Apple system.