Details
Written by: RJ
New reporting from The Information adds context into why the Apple Card/Goldman Sachs partnership could be ending.
The full article is pay walled but Mac Rumors pull a few quotes:
“Former employees at both companies who worked on the Apple Card said executives weren’t prepared for how difficult it would be to combine Apple’s West Coast tech approach with Goldman’s New York-style banking culture. While Apple was more focused on the sleek technology and product pizazz that drew in customers and kept them happy, Goldman prioritized regulatory compliance and profitability.”
The article goes on to cite a funny story where Apple boss Tim Cook was denied for the Apple Card during testing. This had to do with him being famous and the potential of impersonations. Goldman was able to get the boss a card.
Additionally, Goldman is not able to charge fees or collect a cut of interchange fees. A deal they appear to have made due to being new to the card space and wanting to sign a marque name like Apple.
Thoughts
Apple being demanding comes as no surprise. Goldman’s move to not take a cut of the swipe fees also isn’t crazy. In my view the problem is being brand new to the card space while trying to meet these demands. On top of not having much else to cross sell customers. In Banking we look for a term called customer lifetime value. That’s based on having additional products to offer customers.
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Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, vendors or companies, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
All I know is I use Apple Pay all the time and almost everywhere and get 2% back.