Amex to takeover Apple credit card from Goldman?
Jun 30, 2023, 2:49 pm
#1
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Amex to takeover Apple credit card from Goldman?
I have both Cards and Bank accounts with both so I thought this interesting...
Goldman Is Looking for a Way Out of Its Partnership With Apple. American Express in talks to take over Goldman’s card deal, other ventures with tech giant
https://www.wsj.com/articles/goldman...apple-79849a91
https://www.wsj.com/articles/goldman...apple-79849a91
Jul 1, 2023, 9:25 am
#4
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It has been rumored that Apple has very favorable terms with its deal with GS and the card has not been profitable, and that Apple would have to approve the sale to a new issuer.
Also, the Apple Card is a Mastercard, so it seems likely that Amex would lose some cardmembers after a forced change to an Amex card.
Also, the Apple Card is a Mastercard, so it seems likely that Amex would lose some cardmembers after a forced change to an Amex card.
Last edited by dayone; Jul 2, 2023 at 7:43 am Reason: Typo.
Jul 1, 2023, 10:28 am
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Jul 2, 2023, 1:14 am
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Jul 2, 2023, 9:51 am
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This happens periodically. Citi bought the Costco portfolio from American Express, and then American Express bought Hilton accounts from Citi. Several issuers have operated the General Motors card. Barclays took accounts from Bank of America when US Airways merged with America West.
If Goldman wants to exit the card business there would not be an option to convert the Apple card to another Goldman product, only to accept the American Express version or close.
If Goldman wants to exit the card business there would not be an option to convert the Apple card to another Goldman product, only to accept the American Express version or close.
Jul 2, 2023, 2:16 pm
#11
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This is a $0 AF product, which is not at all difficult to be approved for. Why on earth would Amex do this lol?
Jul 2, 2023, 5:22 pm
#12
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Then again, $5B/year buys a lot of new lounges.
Last edited by doublemazaa; Jul 2, 2023 at 5:36 pm
Jul 2, 2023, 8:31 pm
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I guess the main question is what bank is interested in a card product that
1) Offers zero percent financing on purchases that can be rather large (phones, computers, etc)
2) Offers 2%, virtually up front cash back on most purchases
3) Encourages users to pay down balances early to avoid interest through phone alerts / messages
I've been a user of the card since it was launched, it is a good product from a tech standpoint and an offering standpoint, especially at $0 fee. I hope the card persists in this form
1) Offers zero percent financing on purchases that can be rather large (phones, computers, etc)
2) Offers 2%, virtually up front cash back on most purchases
3) Encourages users to pay down balances early to avoid interest through phone alerts / messages
I've been a user of the card since it was launched, it is a good product from a tech standpoint and an offering standpoint, especially at $0 fee. I hope the card persists in this form
Jul 3, 2023, 1:02 am
#14
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Reading this. Hard for me to believe Amex would take over the card in its current form. Or, potentially any form that Apple will accept.
While negotiations may be going on, I'm assuming it's only a done deal when the papers are all signed. I suspect Apple won't want to make too many changes, and Amex will be demanding some changes (because why would they want to take over a product that a bank is losing millions of $ on without them). Not convinced there is a deal to be made here that can work for both.
While negotiations may be going on, I'm assuming it's only a done deal when the papers are all signed. I suspect Apple won't want to make too many changes, and Amex will be demanding some changes (because why would they want to take over a product that a bank is losing millions of $ on without them). Not convinced there is a deal to be made here that can work for both.
Jul 3, 2023, 4:29 am
#15
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Them be some ugly numbers so not exactly sure what Amex has to gain.
A report from January 13 revealed (Goldman Sachs’s) consumer credit division lost $1.2 billion across nine months in 2022, and the losses were primarily related to the Apple Card.
Goldman helped launch the Apple Card in 2019 and reportedly spent roughly $350 to acquire every new Apple Card customer.
https://appleinsider.com/articles/23...pple-card-deal
Goldman helped launch the Apple Card in 2019 and reportedly spent roughly $350 to acquire every new Apple Card customer.
https://appleinsider.com/articles/23...pple-card-deal