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Apple pulls plug on Goldman credit-card partnership

wsj.com

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Re: Apple pulls plug on Goldman credit-card partnership

#11

Post by giobox »

parl_match wrote: post #5
not-my-account wrote: post #2

Hm, what would this mean for Apple Card users? Would it be shut down? How about those who have Apple Savings Accounts?[0] [0] https://www.apple.com/newsroom/2023/04/apple-cards-new-high-...

The rumor is that Apple Card will move to Amex. WSJ says 12-15 months, but AppleCard is contractually obligated to use the MC network until 2025. I can't imagine they'll close all those accounts, so likely we'll see some sort of migration leading up.

This would be a bit of a detractor for me, Amex is not as widely accepted, especially when traveling in Europe. Mastercard is accepted virtually everywhere in the EU and UK.

Re: Apple pulls plug on Goldman credit-card partnership

#12

Post by madeofpalk »

parl_match wrote: post #5
not-my-account wrote: post #2

Hm, what would this mean for Apple Card users? Would it be shut down? How about those who have Apple Savings Accounts?[0] [0] https://www.apple.com/newsroom/2023/04/apple-cards-new-high-...

The rumor is that Apple Card will move to Amex. WSJ says 12-15 months, but AppleCard is contractually obligated to use the MC network until 2025. I can't imagine they'll close all those accounts, so likely we'll see some sort of migration leading up.

2025 is 15 months away!

Re: Apple pulls plug on Goldman credit-card partnership

#13

Post by temende »

balderdash wrote: post #7

I’m curious why Apple is moving to terminate as opposed to getting GS to buy them out of their contract?

One possible reason is that Apple wants to build more fintech products that they still need a banking partner for, and don't want to launch anything new with Goldman since they know the partnership hasn't worked out. So it may just be easier to start the process to find a new partner so you don't slow down product launches.

Source: pure speculation

Re: Apple pulls plug on Goldman credit-card partnership

#14

Post by wdb »

giobox wrote: post #11
parl_match wrote: post #5

Earlier quoted context omitted.

The rumor is that Apple Card will move to Amex. WSJ says 12-15 months, but AppleCard is contractually obligated to use the MC network until 2025. I can't imagine they'll close all those accounts, so likely we'll see some sort of migration leading up.

This would be a bit of a detractor for me, Amex is not as widely accepted, especially when traveling in Europe. Mastercard is accepted virtually everywhere in the EU and UK.

Yeah, I had an Amex card and it was pretty useless in Europe. Admittingly that was more than five years ago so maybe things have improved by now.

Re: Apple pulls plug on Goldman credit-card partnership

#15

Post by arcticbull »

arcdigital wrote: post #4
not-my-account wrote: post #2

Hm, what would this mean for Apple Card users? Would it be shut down? How about those who have Apple Savings Accounts?[0] [0] https://www.apple.com/newsroom/2023/04/apple-cards-new-high-...

I'm assuming it will be just like any other time a card portfolio is sold or transferred (Costco Card: Amex -> Citi, REI Card: US Bank -> Capital One, GM Card: Capital One -> Marcus (which is Goldman, ironically I think they want to get rid of this card too), etc...). Unless Apple discontinues the card completely, they will choose a new bank, that bank will take on the existing portfolio, everyone will get new cards…

Minor nit:

> Costco Card: Amex -> Visa

Amex -> Citi.

Amex was both the issuer and the network (they're vertically integrated, so to speak). The shift saw Citi become the issuer on the Visa network.

Re: Apple pulls plug on Goldman credit-card partnership

#16

Post by malwarebytess »

not-my-account wrote: post #2

Hm, what would this mean for Apple Card users? Would it be shut down? How about those who have Apple Savings Accounts?[0] [0] https://www.apple.com/newsroom/2023/04/apple-cards-new-high-...

I'm more interested in the savings account integration. I've found it super convenient. Too low APR for long term savings, but the convenience is worth the difference to me for short term savings parking. I keep $30K or so in it revolving for moving money around. Not to mention the cashback deposit right to the account.

Re: Apple pulls plug on Goldman credit-card partnership

#17

Post by giobox »

wdb wrote: post #14
giobox wrote: post #11

Earlier quoted context omitted.

This would be a bit of a detractor for me, Amex is not as widely accepted, especially when traveling in Europe. Mastercard is accepted virtually everywhere in the EU and UK.

Yeah, I had an Amex card and it was pretty useless in Europe. Admittingly that was more than five years ago so maybe things have improved by now.

The fact the Apple card was a Mastercard and had no foreign transaction fees was largely the only reason I opened it, as I too find my Amex a pain in the ass in Europe. If it does become an Amex card, I will likely close the account.

Re: Apple pulls plug on Goldman credit-card partnership

#18

Post by s3p »

cpncrunch wrote: post #10

This article is paywalled, with no way to bypass. Non-paywalled summary here: https://www.theverge.com/2023/11/28/23980261/apple-is-report... Can I assume everyone commenting here has a WSJ subscription?

Not me! I didn't read the article. Thanks for the summary.

Re: Apple pulls plug on Goldman credit-card partnership

#19

Post by johnbatin »

Unsurprising since we've heard about this in the past.

I wonder if there is another issuer(s) lined up for the card and the savings account.

The savings account doesn't have the highest interest rates, but I like how my Apple Card cashback can go right into the savings account. It's kind of like a set it and forget it type of thing.

I'm hoping this isn't the end of the Apple Card or the savings account though. It's nice getting 2% CB on Apple Pay and 3% on Apple products.

Re: Apple pulls plug on Goldman credit-card partnership

#20

Post by arcdigital »

arcticbull wrote: post #15
arcdigital wrote: post #4

Earlier quoted context omitted.

I'm assuming it will be just like any other time a card portfolio is sold or transferred (Costco Card: Amex -> Citi, REI Card: US Bank -> Capital One, GM Card: Capital One -> Marcus (which is Goldman, ironically I think they want to get rid of this card too), etc...). Unless Apple discontinues the card completely, they will choose a new bank, that bank will take on the existing portfolio, everyone will get new cards…

Minor nit: > Costco Card: Amex -> Visa Amex -> Citi. Amex was both the issuer and the network (they're vertically integrated, so to speak). The shift saw Citi become the issuer on the Visa network.

my bad! updated, I was thinking Citi but Visa came out after typing Amex right before. thanks!
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