Apple Developing In-House Payment Processing Technology for Future Finance Products

[Robert.Walter]

I have both the Apple Card and Apple Pay. What I don't like about the Apple Card is you do not receive the extra benefits such as extended warranty, travel insurance and other perks offered by other card vendors. If they included Apple Care it would be make up for some of the extra's it's currently missing.

Suggestion. Use it for apple service related payments only (iTunes and iCloud, etc.).

If enough folks do this Apple and GS will offer competitive supplementals to attract greater usage.

 

[Robert.Walter]

Anyone thinking any of this will leave the US is insane.

Why? What forces hold apple back that didn’t hold back the myriad global banks or credit card companies?

To not venture beyond the USA, apple gives up about 500M potential customers in NA and EU.

Yours is like saying apple will never make anything but a Mac.

 

[Robert.Walter]

If they start going into banking services like underwriting credit cards they will be heavily regulated by the federal government. Payment processing is one thing but making loans will make them a bank and they will have to deal with OCC, Federal Reserve and FDIC regulations and examinations.

None of this has made big banks unprofitable or leave the business, so why would it prevent one of the most liquid, popular, trusted, global companies from entering that sector?

 

[Robert.Walter]

What is the incentive for entering a hostile market with a product you have invested millions or even billions in to develop a platform to be a profitable leg of your business.

Apple avoids markets that don’t make business sense.

Apple Cash could also have been a low risk, low investment learning exercise too; one never intended to be scaled in the Green Dot platform.

 

[svish]

Interesting to see Apple venturing out with new ideas.

 

[bigchrisfgb]

Apple might as well make a bank, and then a real-estate company, and then a fast-food restaurant chain...

100% Apple will be working towards launching a bank.

 

[Robert.Walter]

Yes, I have some personal experience in that regard. Jack was not as bad as it may have seemed from the outside, but it's a complex story. Would be a worthwhile discussion in a different thread.

We had to read Tichy’s book (Leadership Engine - it was quite interesting) and the idea behind the Crotonville Management Development Center idea was good, but something was clearly wrong with the whole program and culture; it was designed for maximized excellence, profit and sustainability but all that blew up with Welch’s immediate successor (Immelt who was hand picked by Welch).

Sometimes I wonder if it was largely a PR exercise to impress Wall Street and boost the share price.

It will be interesting to see how Apple University fares.

 

[CthuluLemon]

Written like any GS employee or investor might write it. Haha. Come in, GS is one of the most predatory finance institutions out there (less obvious at it than Wells tho.

Lol, so many people on this forum don’t understand pragmatism or nuance. It’s either I’m all for Apple or I’m a Goldman shill to you, apparently. ?

Food for thought: maybe I have misgivings about both companies.

 

[Robert.Walter]

Lol, so many people on this forum don’t understand pragmatism or nuance. It’s either I’m all for Apple or I’m a Goldman shill to you, apparently. ?

Food for thought: maybe I have misgivings about both companies.

I didn’t make that assertion. I just indicated that, to me, your comment was materially indistinguishable from one that a GS shill would make.

 

[shplock]

So then this product will ONLY be available for he US market as here in the U.K we are still waiting for Apple Cash and Apple Card all these years later.
I guess Tim Cook needs to look at an atlas to see that the entire world is not the US.

 

[Abazigal]

What is the incentive for entering a hostile market with a product you have invested millions or even billions in to develop a platform to be a profitable leg of your business.

Apple avoids markets that don’t make business sense.

The same as any of their other projects. Apple takes an emerging product category with a frustrating user experience and delivers a polished product made possible by its control over both the hardware and software. And everybody wins.