Sidebar Sidebar
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.

U.S. Regulators Want More Control Oversight Into Apple Pay

[QUOTE}
Second, Goldman has also been very liberal in approving people for Apple Card. This has led to the bank having to charge off balances at a much higher rate than banks like Chase and Bank of America. Here are some numbers from the company’s recent regulatory filings (via CNBC):

  • Goldman as (sic) a 2.93% net charge-off rate, double Chase and Bank of America
  • Goldman is less aggressive (and less successful) at recovering charge-off debt than other banks[/QUOTE]
"Charge-off" meaning written-off debt? What you're quoting is obviously the correct answer, but I still don't get it.

Surely they could just not approve people as easily and set tighter credit limits going forward?

And having all the payments due on the same day... that doesn't seem like an insurmountable issue in this day and age. It's not like there's an army of accountants sitting there slaving over adding machines (I'm thinking of Terry Gilliam's "Brazil" going back a few years :) ). It's all computerized, in other words!

***
That aside, I have to say the Apple Card is really convenient. It shows receipts on your phone (and watch) right away, tells you how much to pay to avoid interest, has all the charges there without having to log into a site to look them up...
 
  • Like
Reactions: msackey and littlepud
Make Apple iPay open source and free and move all new features/functionality to the premium Apple iPay Pro. Should buy them a few years!
 
DaveN said:
Sounds reasonable.
Click to expand...
Sounds completely unreasonable. Everything in the Apple wallet that should be regulated is regulated, credit cards, debit cards, Apple card. Everything that is just cash but digital, should be like cash. But digital unregulated, cash was designed to be unregulated and untraceable by the government. The people in the government that want to track your cash should scare you, just because it’s digital shouldn’t change anything about how and why cash was design the way it was, don’t let it being digital be an excuse to change it.
 
  • Like
  • Haha
Reactions: Lyrics23, Timpetus, SonicSoundVW and 1 other person
From a developer perspective, I can tell you we get LOTS of complaints and requests about Apple Pay. The clients want to harvest all the consumer data from each transaction, which Apple Pay obscures. I can assure you that the vast majority of actual complaints here are coming from businesses and banks, as well as competitors, not consumers, who are unhappy they can't gleam the same level of info/data from Apple Pay transactions that they can with an ordinary CC, ACH or EFT transaction. Consumer level complaints are mostly on the level of "my watch wouldn't connect for Apple Pay, so I had to get my phone out of my bag..." or "XXXXX Coffee House still doesn't take Apple Pay and wants us to use their app."

And Apple may harvest the data for themselves, but they don't make it available to others. That's another thing that seems to infuriate banks and government agencies. Somehow they think this is more nefarious than how Google harvests all the info, for themselves, but somehow is less nefarious because they also sell it to the highest bidder? Hmmm...

Other payment platforms and now virtual wallet providers are all offering their own services so they can have access to the payment data. They're trying to woo consumers over to them vs. Apple Pay and there's already murmurings of anti-trust this or that with some of these providers. It's like Target taking forever to offer NFC payments until they could offer it in their own app. And all the others trying to do the same. Or worse -- Home Depot, Lowe's, WalMart... Won't even take NFC payments as they bend over for the CC companies and/ or try to force their customers into using their apps or in-house credit offerings.

Now there's the Apple Card, which is different entirely. Backed by Goldman Sachs, they seemed to misinterpret the market. As they have done with most of their consumer credit products over the last 15+ years. The Apple Card is a complete **** show and Goldman has supposedly been looking to offload it or even abandon it.
 
  • Like
  • Love
Reactions: msackey, strongy, nvmls and 3 others
The CFPB's proposal to regulate tech companies like Apple as traditional banks could significantly dampen innovation in the digital payments space. While consumer protection is important, the volume of complaints must be weighed against the millions of successful transactions these platforms process. Consumers often choose digital wallets for their convenience, despite different risk profiles compared to traditional banking protections. Imposing a one-size-fits-all regulatory framework ignores the unique nature of tech companies that, unlike banks, don't manage customer funds long-term. A better approach would be a collaborative effort between regulators and tech companies to develop guidelines that protect consumers while still fostering innovation. Over-regulation could slow the momentum of a sector that has greatly enhanced how we transact in the digital age.
 
  • Haha
  • Disagree
Reactions: rockstarjoe, nvmls and Lyrics23
mikebenton said:
Apparently folks can't tell the difference between a credit card, a savings account, and a payment processing platform. The article is related to the later and has absolutely nothing to do with the first two.
Click to expand...

And ApplePay / Wallet are none of the above. AppleCard is a vanity card. No different than the GM card from Goldman or HSN / QVC / Store cards from Synchrony.

Wallet is a container of digital credit card numbers (aliased and anonymized from the banks).

ApplePay is a tech layer to allow the NFC to talk to the POS.

To say Apple has any real place in the financial process is one hell of a stretch. Or does the CFPB think I am a payment processing platform when I swipe my card at the grocery store?
 
  • Like
  • Disagree
Reactions: strongy, Da_Hood, Timpetus and 1 other person
  • Like
Reactions: strongy, Timpetus and SonicSoundVW
chouseworth said:
And in related news, Goldman Sachs announced today that it is terminating its GM credit card business. Guess who is not much farther down GS's list? GS has had it with consumer banking. I know that Apple Pay is not directly related to the GS credit card business, but you can see things getting much more complex for Apple in its banking and consumer finance efforts.
Click to expand...
Goldman Sachs is a failure in every way possible. Should’ve went bankrupt in 2008.
 
For everyone who Apple Pay is hurting, it’s the banks. They don’t want Apple between them and the consumer. At the end of the day, all Apple has to do is flip a switch and start banking to kick them out. None of them have efficient technology services.
 
  • Like
Reactions: strongy
A lot of legal compliance for Apple. Not surprising to see this happening.
 
msackey said:
I really, really, really hope Apple Card doesn't become an Amex Card. I want it to continue to be a Mastercard credit card, or a Visa (and no Discover either!). Amex is truly quite, quite useless outside of North America, and even within the US, it's not as accepted as Visa or Mastercard. Discover is even more useless than Amex outside of North America.
Click to expand...
No it’s not Amex is accepted most places here in the UK!
 
In the end, the transaction is being executed by financial institutions that are regulated already. Apple is not providing any credit or debit in any of the transactions I do, so not sure what added value of this is, expect raising costs for the consumer?
 
  • Disagree
Reactions: Da_Hood
chouseworth said:
And in related news, Goldman Sachs announced today that it is terminating its GM credit card business. Guess who is not much farther down GS's list? GS has had it with consumer banking. I know that Apple Pay is not directly related to the GS credit card business, but you can see things getting much more complex for Apple in its banking and consumer finance efforts.
Click to expand...

A Goldman exit will just open up space for another bank to step in provided they meet apples conditions.

If the partnership path becomes too narrow this just advances apples timing to enter banking organically or through acquisition.

This happens all the time in Apple's businesses, usually it’s tech firms with less regulatory and consumer interfaces but all apples big 3 ambitions banking, medical, automotive have demands at the regulatory/consumer interface, so to grow Apple needs to get right with managing these. Fortunately Apple already has generic experience along these lines due to their global watch biz.
 
TracerAnalog said:
Some of those ‘reviews’ are hilarious😂. I use Apple Pay daily, it is a simple way to pay for everything using my own bank. Apple Pay is only the ‘in between’ that allows for a secure payment. (Europe) If I have a problem with a payment I go to my own bank.
Click to expand...
Agreed. Apple is not unlike the payment terminal in a Payless transaction.

I suppose the reg req and responsibilities for Apple’s position in the chain might be unique but I can’t see them being near to the know your customer req that banks have because Apple is largely a pass through like the payment terminal is.

CPFB would be better off instead pressing all merchants, or the regulators who have that authority, to support Apple Pay and contactless in general.
 
You must log in or register to reply here.
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.
Top Bottom
Back