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Apple Ending Apple Card Partnership With Goldman Sachs

5232152 said:
Apple has enough liquidity to do it themselves if they wanted.
Not sure if they should.
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Naa, Apple is great at many thing and I think one of them is knowing where there strengths are. Banking is a confusing deep mess of regulations and I doubt they want to step into that.
 
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Tagbert said:
I have several credit cards not issued or associated with Apple that are in my wallet and can be used the same way for payments. If you mean how the Apple card shows transactions and allows payments, that is the kind of integration they would only get with their own card. Other issuers aren’t going to share that data.
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They've expanded integration with 3rd party cards in some markets already.
 
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Surprise. Not. I am only surprised it did not happen sooner. Goldman was absolutely terrible service connected to the Apple brand and did more to harm it than anything. Wife and I both canceled our high limit accounts because of the never-ending service issues.
 
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MrRom92 said:
I would advise that nobody pays their bill until there is an official statement on what the plan for this card is and what will happen to our Apple Card accounts.

Take all your money out of your Apple Card Savings account as well. Immediately.
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Why would you do that? It doesn’t matter if Apple finds another card issuing partner or not, they still are responsible for your card and savings accounts. You still owe the card balance and would need to pay interest on unpaid balance. You still own the money in the savings account and Apple would owe it to you if they ended the program. Do you not think that Apple would be able to pay out?
 
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MrRom92 said:
I would advise that nobody pays their bill until there is an official statement on what the plan for this card is and what will happen to our Apple Card accounts.

Take all your money out of your Apple Card Savings account as well. Immediately.
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Not paying your bills would only mean you’re paying interest on the balance - bad advice
 
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newyorksole said:
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.
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They'll probably just find a way to become their own bank. Just buy some more suits and another office building, and push it through lobbying. I doubt this hasn't already been proposed in Cupertino.
 
Amex seems like the only other logical option.

Guess I might be cancelling my card and moving back to Amex if it’s anyone else.

Bummer.
 
KPOM said:
Not a big surprise given that Goldman is largely scaling back its consumer portfolio. It was never a great fit for them. They were willing to accept Apple’s terms while other more traditional card issuers were not, which I’m sure is why they got the nod a few years ago. I’m guessing to get another partner, Apple may need to share in the credit losses (if they are the ones insisting on extending credit to almost all applicants).
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Exactly! Nobody should be surprised about this outcome. Apparently, the Apple Card burst a pipeline of north-shore naiveté burst and polluted the water table. Didn't get me, though; I drink only pure snow-melt cynicism.

Goldman-Sachs got suckered :confused:. They must not have had anyone on staff, that Friday at 3 PM when the proposal came in. Or maybe Goldman Sachs' spies in the other card issuers' data centers weren't answering their burner phones (bought by cut-outs for cash down at the Duane Reed and delivered by using Ubers as dead drops).

The mainstream consumer card issuers did not need APPLE to INVENT not sucking. They already know that not sucking is too much work for not enough net profit. Apple will never get the same scale of partnership deal, considering consumer finance conditions in a declining world (which will get much, much worse, so buckle up.)

If the story is legit, then it seems Apple has has some options:
  • Eat crow and close down their consumer card and related benefits.
  • Give up transaction revenue to compensate a wiser mainstream bank for crafting an Apply consumer card experience.
  • Settle for issuing a generic branded full-suck card experience, including brand damage from hoards of revolting peasants trash-talking Apple for all their financial struggles.
 
jvchappy said:
I really hope they fix it without closing the card and re-issuing it. Closed cards are bad for credit ratings. Love my apple card and how easy it makes it to buy apple products. Won't be buying as much without the 0% interest payment plans
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Gap switched from Visa to Mastercard a year ago and it was smooth.
 
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I think Apple’s next partner (if there is one) will want more favorable terms. In other words, Apple will have a choice between giving the next guy a bigger cut or turning everyone’s Apple Card into a non-functional Apple souvenir. Knowing Apple, I think there’s a 25 percent chance they’ll establish a new partnership for the Apple Card and a 75 percent chance they’ll turn your Apple Card into a non-functional souvenir.
 
EdMan said:
If it’s Synchrony I will close my account. They’re a nightmare to deal with.
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You might not have to worry about that lol. I used to have an amazon store card until one day Synchrony randomly closed it. I never carried a balance on it... which is probably why..... but yeah, one day they just pulled the plug. No explanation! No phone calls. Nada. Just closed. Customer service wouldn't tell me why either.

I'd be ok with an American Express apple card..
 
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Tagbert said:
Why would you do that? It doesn’t matter if Apple finds another card issuing partner or not, they still are responsible for your card and savings accounts. You still owe the card balance and would need to pay interest on unpaid balance. You still own the money in the savings account and Apple would owe it to you if they ended the program. Do you not think that Apple would be able to pay out?
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Stunning how some people's minds work, huh ?
 
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TigerNike23 said:
From a regulatory perspective, they’re better off partnering than doing this all by themselves. Banking is messy.

Source: I work in banking.
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Banking IS messy. But they have the money, easily, to put a team together to form a financial subsidiary, if they decided that was the right thing for them.

I mean, it isn't like there haven't been any new banks created in the last 30 years because it is so complicated. haha

Also, I'm sure they would be Apple Card/Savings/Pay Later ONLY, not a full service bank and of course no brick and mortar footprint.

They do like to control the whole widget...

(I'm not saying I think they ARE going to do this, but I don't think the complexity of forming a limited service bank would be the thing that stops Apple. It would just be the benefit/profitability.)
 
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MrRom92 said:
I would advise that nobody pays their bill until there is an official statement on what the plan for this card is and what will happen to our Apple Card accounts.

Take all your money out of your Apple Card Savings account as well. Immediately.
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That's absurd, reactionary and stunningly irresponsible.

These things happen ALL. THE. TIME... The partner bank of a branded card being replaced by a new partner is... run of the mill stuff. There's nothing unusual to see here, it is just Apple-related this time. So suddenly a lot of people who have NEVER followed this genre of news before are paying attention.

(And forming snap expert opinions.)
 
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As long as the terms and interface and features are unchanged, I couldn't care less about the partner.
 
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TigerNike23 said:
From a regulatory perspective, they’re better off partnering than doing this all by themselves. Banking is messy.

Source: I work in banking.
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Messy? No offence but messy is an understatement.
Partnering seems logical, but what if they could pull it off in-house?
 
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