Apple Ending Apple Card Partnership With Goldman Sachs

[LogicalApex]

I am honestly pretty shocked. not after the losses Goldman reported and the other issues, but in general.

just did not see this coming. hope American Express takes over! looks like it could be Synchrony though.

curious to see what Apple will say when the time comes / how they’ll market the new partnership(s).

Amex as the issuer might convince me to get an Apple Card, but I highly doubt it will be American Express.

Amex base features conflict with Apple being able to sell various products. Like the 1y warranty extension would undercut the sales proposition of Apple Care+ for many.

Apple Working to Bring More Financial Services In-House

Apple Inc. is developing its own payment processing technology and infrastructure for future financial products, part of an ambitious effort that would reduce its reliance on outside partners over time, according to people with knowledge of the matter.

www.bloomberg.com

Looks like Apple is ready

They’ll still need a bank. Very unlikely they’ll be granted a banking license nor would they want the regulatory burden.

 

[CapitalIdea]

Good. Now please go back to making hardware and software, that’s what you do the best, you were never meant to be a bank. Nor a movie producer, but we’ll wait for that one to play out in due time

Play out? They won Best Picture for Coda for god’s sake.

 

[bumblebritches5]

Apple just needs to buy the bullet and create (or purchase) their own financial entity. The glaring issue with the Apple Card / Savings is the lack of continuity between Apples core customer values and those of Goldman Sachs. Buddying up with another traditional bank isn’t likely to fix this. We need Apple employees running the show, and Apple tech / payment rails.

Seriously, all big companies do this.

GM/Ford are basically banks that happen to build cars on the side, same for the big airlines.

 

[Mr. Jenkins]

Apple kept all the perks out of being a credit card issuer. LOL

 

[npmacuser5]

Apple Pay was around long before Apple Card showed up.

True, Apple Card brought it home!

 

[Apple_Robert]

If the news is true, we still have 12-15 months before anything happens. And even then, it may be a couple of years before we get new cards.

 

[bradl]

If the news is true, we still have 12-15 months before anything happens. And even then, it may be a couple of years before we get new cards.

The bigger (okay, cosmetic) question..

Would the new cards to be issued still be titanium? 😅

BL.

 

[Apple_Robert]

The bigger (okay, cosmetic) question..

Would the new cards to be issued still be titanium? 😅

BL.

I doubt it. lol

 

[hoodafoo]

Never in the history of the United States, has Goldman Sachs ever gotten a raw deal.

Aren't they a fancy Dept store or am I confusing them with someone else?

 

[brofkand]

Huh.. I wonder if that means the end of the Apple Card if they don’t find a new partner. I do really like its intuitive interface.

I don't think they have a choice given the deal they have with Mastercard. I mean I am sure there is a breakup fee in the contract but it's probably not something Apple wants to deal with.

 

[coachgq]

that would be pretty wild if they just got rid of the Apple Card altogether.

there HAS to be someone willing to take it on lol, but we’ll see.

But I don’t see how GS is really earning much money in this setup. I’m curious also how many Apple Card users pay their bill in full each month vs other cards. I’m sure the data is out there. I generally pay my bill in full if I just put random stuff in it. If I buy apple items with it, I will take the free financing. I also use my other points card at times. I’m not very loyal to either really. Just whatever I feel like at the register.

 

[brofkand]

Pretty much.... also the end of the Apple Savings Account as well. No other issuer is going to want to enter into this arrangement. There's no profit in it.

And there's no benefit to the issuer, they are guaranteed to get all the blame and none of the praise. Sort of like AT&T when they were the only carrier for the iPhone.

 

[Chuckeee]

Does Apple require 30% when you use the Apple Card ?

They require the 1st payment also include any sales taxes associated with the purchase. The 0% (or other lower rate) financing was only for the purchase price of the Apple product(s).

 

[lovehateapple]

Apple has enough liquidity to do it themselves if they wanted.
Not sure if they should.

Apple probably doesn't want to get into a money losing business like Goldman Sachs. The purpose of the Apple Card was to drive sales of Apple products, but if apple becomes the bank and the borrowers default apple doesn't benefit from the sale of their stuff.

 

[MacDaddyPanda]

Apple probably doesn't want to get into a money losing business like Goldman Sachs. The purpose of the Apple Card was to drive sales of Apple products, but if apple becomes the bank and the borrowers default apple doesn't benefit from the sale of their stuff.

Wouldn't they rework the terms and conditions if they did take over? That follows more of the Financial industry standards. That might not make every one happy and I would imagine that reduce the risks with such services.

 

[JapanApple]

Goodman and Sachs's bad company worse company to do business with.

 

[lovehateapple]

I really liked my Apple Card and it being Mastercard. Meant that it would be accepted practically everywhere. AmEx would be nice, but it definitely wouldn't be accepted it nearly as many places. Probably means I should get another credit card to use as a backup.

Citibank Costco card is a good option if you shop at Costco at all.

 

[Chuckeee]

Aren't they a fancy Dept store or am I confusing them with someone else?

You are confusing Goldman Sacks (one of the biggest investment banks in the world and the current issuers of the Apple Card) with Sacks Fifth Avenue (high end department store). Two separate and very different companies.

Home

The Goldman Sachs Group, Inc. is a leading global investment banking, securities, and asset and wealth management firm that provides a wide range of financial services.

www.goldmansachs.com

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[Macalway]

They might try using a company with banking experience.

Just a idea.

 

[brofkand]

They might try using a company with banking experience.

Just a idea.

A bank or most credit card issuers are going to want to be featured on the card. Only a company like Goldman which had no consumer arm prior to Apple Card, or a company that does branded cards as a majority of their business, like Synchrony, would be interested.

Wells Fargo is going to want Wells Fargo slapped on the front of the card, and Apple is too vain to share the limelight. Remember Cingular was the only company who would allow Apple to sell a phone without tattooing the carrier's name onto the device somewhere.

 

[Prof.]

It'll be terrible if they're forced to close Apple Card accounts over this. Hopefully they find another business partner.

 

[WarmWinterHat]

A bank or most credit card issuers are going to want to be featured on the card. Only a company like Goldman which had no consumer arm prior to Apple Card, or a company that does branded cards as a majority of their business, like Synchrony, would be interested.

Wells Fargo is going to want Wells Fargo slapped on the front of the card, and Apple is too vain to share the limelight. Remember Cingular was the only company who would allow Apple to sell a phone without tattooing the carrier's name onto the device somewhere.

Goldman Sachs is printed on the rear of the physical card.

 

[Chuckeee]

They might try using a company with banking experience.

Just an idea.

I assume you mean commercial banking experience. Goldman Sacks is the 2nd largest investment bank in the world.

 

[Eithanius]

Hahaha...! Goldman Sacked...!!! They deserved it, considering they had a history of almost bankrupting a country...

 

[CarAnalogy]

You can drop the carrier the moment the phone is activated. They come unlocked from Apple, no matter what carrier you select.

You're not tied to them for 24 months.

As I recall I selected Verizon just to see what would happen and it went right to “ok new number or port your number” so it strongly appeared to me that I had to open an account with them to proceed.