Apple is in talks with two new partners to take over Apple Card
Hey Payments Fanatic!
Apple is in discussions with Barclays and Synchrony Financial to potentially replace Goldman Sachs as its credit card partner. The talks come as Goldman Sachs CEO David Solomon indicated their partnership, originally set to run until 2030, might end earlier than planned.
Several financial institutions are competing for the Apple Card partnership, though some view the original deal terms as challenging for profitability. Barclays has been in negotiations for months, having recently acquired Goldman's General Motors credit card business in 2024.
The potential shift follows Goldman Sachs's strategic retreat from consumer finance after setting aside billions for potential losses, marking a significant change from its decade-ago expansion into retail banking.
The Wall Street Journal previously reported that Apple is in discussions with JPMorgan Chase and Capital One to take over the partnership.
Stay tuned for the latest updates. In the ever-evolving world of Payments, being informed is your best asset 😉
Cheers,
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INSIGHTS
📊 How big is the cross-border payments market? 2032’s $65tn TAM. In this report, FXC Intelligence outlines the overall size of the market and how growth in key sectors is driving a significant upswing in cross-border payments between now and 2032. Download and read the full report
PAYMENTS NEWS
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GOLDEN NUGGET
How do we find opportunities among so many payment companies?
What do they do exactly? 👇
The diagram above shows the payments ecosystem.
🔸 Steps 0-1: The cardholder opens an account in the issuing bank and gets the debit/credit card. The merchant registers with ISO (Independent Sales Organization) or MSP (Member Service Provider) for in-store sales. ISO/MSP partners with payment processors to open merchant accounts.
🔸 Steps 2-5: The acquiring process.
The payment gateway accepts the purchase transaction and collects payment information. It is then sent to a payment processor, which uses customer information to collect payments. The acquiring processor sends the transaction to the card network. It also owns and operates the merchant’s account during settlement, which doesn’t happen in real time.
🔸 Steps 6-8: The issuing process.
The issuing processor talks to the card network on the issuing bank’s behalf. It validates and operates the customer’s account.
👉 Quite a few companies offer digital wallets. Can you find a place for wallets in the ecosystem?
Source: Hua Li
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