dw

Amex CEO was quoted today basically saying “no way” about potentially taking over the portfolio, due to credit profile of the pool.

ecs0013

Here's a post about it: https://www.bankingdive.com/news/ame...oldman/701746/

Not to get us too off-topic, as I know most of the talk is about co-branded products, but it's funny Amex is talking about premium products. They have a couple of dated cards that are absolute jokes at this point—just about every other entry-level rewards card from other banks is more "premium" than the EveryDay card at this point (I'd say even if you like MRs). At least bring it on-par with the refreshed Blue Cash Everyday?

Along with that, people seem to be having "coupon book-fatigue" with some of the higher-end cards, especially with some credits that don't quite match the perceived Amex brand.

anrkitec

The Everyday cards give people what can effectively be a $0-$95 AF downgrade path from Green/Gold/Platinum that lets you keep, earn, and transfer MR points out to partners.

While it’s not an actual 1:1 downgrade, it’s a credit card, not a charge card, and you have to apply for the Everyday separately, it does give you a way to keep and use your MR points if you get tired of paying $695 for the Plat or $250 for the Gold.

ecs0013

Definitely, not to mention the ED->EDP upgrade offers that some folks have been able to use multiple times and the rare targeted Amazon MR offers. Among my handful of cards, I have a just-after-launch-day EveryDay that basically is kept for its history and Amex Offers (not really doing MR points otherwise at this time) and other than losing some benefits like extended warranty, it hasn't changed since 2014. As Amex has updated just about every other card in their lineup since then (some multiple times), it'd be nice to see a refresh, especially since my Apple Card took over grocery spend for me (in my opinion, 2% back is more flexible than 2x MR in small quantities).

While I like Amex and think there's a lot of great options within their lineup for value, the "they're definitely getting the Apple Card" talk has given me pause when I think about it. Until the Blue Cash Everyday got a refresh, I'd have been in the camp that Amex really doesn't want to be in the no-AF card business these days, but has to since everyone else is. That would be my hesitation if they took over the Apple Card portfolio and could dictate some of the reward/benefit structure—as just about everyone else has been moving to 2% cards or 1.5% with no-FTF, they launched the Cash Magnet, a 1.5% with a FTF, no extended warranty, and obviously a smaller acceptance network.

G2244

Nothing "new" here but was looking for any updates on GS selling off the Apple portfolio and found an article making some interesting points about how Chase may be a contender.

ecs0013

Interesting piece—I'm waiting to see what happens with both the Apple Card and Discover in the next year or so as that may reshape at least a corner of my wallet if I bail on those accounts (meh about Synchrony and on the fence about Capital One). Regarding Chase, I find it a little funny that the article talks about Chase's "reliance on the Mastercard network" being that up until a few years ago, only an oddball corporate card and the IHG cards were Mastercard. For awhile, Chase Mastercards couldn't even be added to Apple Pay. That's changed now and I wonder how Chase would handle this—would it look more like the Amazon cards (being a closed cash back system) or maybe some sort of co-branded UR hybrid (to encourage more Chase products?) They have been into some cobranded cards that have been viewed as somewhat ridiculous, such as the Starbucks card (although it's the second time since BankOne/Chase had one with Starbucks before), the Instacart card, and the DoorDash card. The latter two are also Mastercards.

I do think there's a segment of the Apple Card customer base that might not have the credit profile that quite fits with a lot of Chase's products, but maybe they see this as a way to grow? Even then, it would be hard to nerf the card to profitability too much (rewards kinda compare with Chase's other no-AF cards, I doubt Goldman-Sachs is losing much on FTFs, maybe just late fees?)

Either way, it's going to be interesting to see who wants that portfolio and how they might make it profitable for them.