I’m hoping that with Goldman withdrawing, the partnership could be transferred to either American Express or perhaps JP Morgan. I don’t see another company that can offer what Apple aims to achieve with the card.
Neither of those outfits are likely to adopt the kind of underwriting standards that Apple will want in place.
Nobody — even the subprime folks like Synchrony — is going to concede the interchange fee revenue that GS surrendered to Apple. That’s the truly shocking part of this story.
My bet is on Synchrony, in all honesty. I kinda hate them but I’ve had better experiences with them than GS. A lot of their problems come down to outdated technology and that’s something Apple will certainly fix for the Apple Card. A good partnership might even see Apple lend some expertise to Synchrony on their other products. Their account management system feels like it was designed in the 1990s on Web 1.0.
What happens to unpaid balances?
Your debit gets sold or transferred to the new bank and someone else comes after you.
With the amount of cash Apple is sitting on they should just open their own bank or buy one
They really shouldn’t. Tech companies should stay focused on their core products. GE pivoting into finance and banking ruined them. They used to be one of the biggest and most important companies in the world, now they’re a shell of a company.
Apple pulls plug with Goldman Sachs? I think it was the other way around, Goldman Sachs pulls the plug
GS has a contract until 2029. This report is saying that Apple is letting GS out of their contract and has 12-15 months to transition.
Other than paying off my large Mac purchases over time, I’ve found very little use for this card in the wild.
Bank of America select cash back does 3% on all online purchases, including apple.
Chase freedom does 1.5% on everything. (which is a negligible difference from the 2% Apple Pay perk)
The combination really puts apple only perk as 0% APR.
I’m sure someone will vehemently tell me how wrong I am but, this is basically an in store credit card good for deferring payments only.
I got it for Uber 3% cash back. Then the pandemic happened and I stopped taking rides. Then I got the Chase Reserve which has 3% cashback on all travel (including Uber) and 10% for Lyft. So now I just use it for app purchases. For buying Apple products themselves I buy Apple gift cards from Target at a 5% discount. So that’s 5% cash back which beats what you are doing.
I pretty much only use it where they don’t accept my Amex because I can at least get the Apple Pay Cash back
Love how people spin things. You say 2% is a negligible difference from 1.5%, but people will shoot you dead if you dare use the physical card to only get 1% (which is a negligible difference from 1.5%)
I say use what card works for you.
Citi Double Cash is also a no fee card that gets flat 2% back on everything.
The Apple Card just truly isn’t a competitive product for anything other than the 0% financing and 3% cash back at Apple, and even that isn’t particularly standout, as you mentioned.
Personally - I like the UI of all the wallet and payment methods as well as how trivial it is to dispute and how smooth the process is.
It’s something all providers should strive to be.
But raw perks relative to others? It’s… standard. At best.
Amex has way better benefits for sure.
Although Apple gave me a HUGE amount on my card - like so much that if I were to max it out there’s no way I could afford to pay it back. Helps me credit though, so I’m not complaining.
edit: Oh and the auto-transfer to savings is sexy as well as how trivial it is to add or withdraw.
The no foreign charge works really well for me though. I’m not in the States anymore.
Don’t forget purchase protections, extended warranties, point transfers, all of the bonus features provided by competitors even at 1.5% CB. Some offering more CB for other categories.
Apple Card didn’t have an advantage in any category other than convenience.
The only benefits Apple Card has that others might not is no foreign transactions fees on a no AF card, wider acceptance of MC than AMEX, ease of use in the Wallet app, and 0% financing with 3% cash back on Apple products.
There are tons of flat 2% cards these days. Nerdwallet has some nice write ups. Apple card was always about convenience for iPhones, and 2% flat wasn’t as common when it launched
It’s phenomenally useful as a card programmed conveniently into all my Apple devices and I use it nearly exclusively overseas, especially in Japan.
so we don’t have to pay off any remaining balances? Hooray! /s
If only 😂😂
I mean, if any company has the resources and bandwidth to spin up an in-house operation, it’s Apple. I’m sure they’re, at the very least, considering going partnerless.
Especially since, given Goldman’s experience, I’m sure any contract with a new partner would pass more of the losses on to Apple than previously.
Technology companies venturing into financial services doesn’t usually go well. Ask GE
Being a bank is lucrative if done right — just ask the airlines.
Which airlines run a bank?
Isn’t that hyperbole? They’re not doing banking, they’re running a rewards program that has a vague dollar value but really serves no function of a traditional bank.
they turned airlines into something more like financial institutions that happen to fly planes on the side
For example here they’re hedging. It’s like financial institutions.
Here’s how the system works now: Airlines create points out of nothing and sell them for real money to banks with co-branded credit cards.
So, they’re like banks if they partner with banks to run a program.
This argument does not pass the sniff test to me. It’s just The Atlantic selling a narrative so their readers can talk about something to sound clever.
Starbucks is like the 7th biggest bank in the WORLD!
Throwing money at a problem solves nothing.
Let Amex take over and have Amex issue Mastercards since there is a deal in place until 2026 jajajajaja .
Jesus. Well, I haven’t heard anything from Apple directly. Think we’d all get an email soon, no? I got the card for the cash back on practically every internet purchase using Apple Pay. Then the 0% on iPhones for two years (one year on the other devices) was sweet. I hope they can keep that with whoever they hook up with. Honestly I didn’t expect this to last long. Apple makes it really easy to pay the card before the interest piles up. I barely pay any interest on the card.
So glad I never got one.
im pretty sure 99.99% of people got an apple card for the “lolz”. the cool thing about it is (1) it doesn’t have a card number/cvv and (2) its heavy, so its fun to drop
It definitely has a card number and cvv, but if you meant on the card then you are correct. The card just has your name on it. Apple Card is the best credit card I’ve ever had.
That sucks. The functionality has been excellent, IMO. I like it much better than my cards from Chase or Amex.
It’s crazy how user experience plays such a big role in these things. Wells Fargo can’t make a good app for the life of them. AMEX and Citi have gotten better, but none are near the ease of use I get from the Apple Card. That’s why it’s my daily.
Amex definitely best aligns with Apple but I understand why they’re hesitant. Amex treats me like a human which I greatly appreciate
AMEX customer service is mediocre if you need assistance with something beyond the basics, which is ridiculous for a company that size and if you have a high tier card like the Platinum.
noooo :( i hope someone takes over the apple card
I’m not sure if I understand this correctly. Is Apple pulling the plug or is Goldman pulling the plug here?
I got this card for one reason, and one reason only. My son-in-law has one…threw it down one day to pay for something. That clink…that metal sound…what is that I had to know? And now…I have the clink. So my hope is that that is not going away. Not sure who else makes a metal card ( probably some AE version)…but I am easily entertained in my old age as you can see.
If the Apple Card ever stops working, you can still sit at your kitchen table and throw the card down to hear that clink if that’s what rocks your socks. That parts never going away.
First he took your daughter and then your man hood by throwing down that Apple Card. Gigachad son-in-law
AMEX Hilton Honors card is titanium now.
That clink
Marriott (the black ones) cards from Chase have the metal layer in the middle.
My Amazon card has that heavy ‘clink’. But I assure you that there is more to it that just the sound because throwing down an Amazon card doesn’t get anyone excited.
Curve, Revolut, Vivid does metal cards. They are not that rare in the wild if you search for them, but they are usually on high-cost tiers
Chase Amazon Prime is metal too.
That…has my interest.
Why don’t they just tighten up the lending standards, so they don’t have such high losses? Seems like they’re giving cards to absolutely everyone who asks for it whether not they are a financially stable customer.
It was like that but then some woman got denied and wrote an article about how its unfair that her husband qualified and she was denied, the story grew and GS had to lower their standards by a lot
It is tight. I’m only one hour know who could get approved