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Apple will reportedly launch a credit card with Goldman Sachs
- mikestew 8y agoI was just looking this morning at the cards I have attached to Apple Pay. It was then that I noticed the new card-like graphics for Apple Pay, and there is language that makes "Apple Pay" sound an awful lot like a credit card. In the information section for Apple Pay there are things like "Card details", which lists it as "Discover Debit" with what looks to be a non-active PIN (it's all zeros). "Some stores may require a PIN to complete transactions with your Apple Pay Cash card." Granted, it's all just verbiage, but Apple launching some kind of financial instrument wouldn't shock me.
- jonknee 8y agoPeople can send you money through iMessage and you can then use that money for payments at places that both support Apple Pay and take Discover.
- SOLAR_FIELDS 8y agoFWIW it hasn't worked too well overseas. I tried it in Sweden and my "normal" credit card works but whatever vendor they were using at Pressbyrån did not like whatever setup Apple has (they took discover)
- deleted 8y ago[deleted]
- gregimba 8y agoI used to have a final card. I wish I could have just been rolled over into this instead of having to sign up for another card.
- tootie 8y agoGS has been pushing hard into retail banking and is also trying to repair their brand perception.
- dev1n 8y agoThis is interesting because I was just exploring this idea around how all companies eventually just become banks. The example I was thinking about though was GE Capital. GE started out making stuff, then they became a bank. General Motors started out making cars, then they became a bank. Many more companies have venture arms which act like banks on a more intimate level. But still.. This makes sense as there are only so many macbooks, iphones, cars, generators, lightbulbs, etc.. to sell. Selling money is much much more lucrative.
- martin_bech 8y agoPlease name any bank thats more lucrative than Apple.
- martin_bech 8y agoI have no idea why im beeing downvoted, im directly replying to the parent post which claims “This makes sense as there are only so many macbooks, iphones, cars, generators, lightbulbs, etc.. to sell. Selling money is much much more lucrative.” Im pretty sure, that no bank is in the same profit/lucrative league as Apple.
- anitil 8y agoWhile your point may or may not be correct, it was probably the tone of the comment rather than the substance that people are responding to
- r00fus 8y agoPoint in fact: Braeburn Capital which is one of the largest hedge fund (if not largest outright) in the world by assets under management.
- martin_bech 8y agoBraeburn Capital is owned/created/run by Apple.
- jbob2000 8y agoBad idea Apple. The only reason many of us use credit cards is to collect points. Without the incentive of earning points to spend on flights and merchandise, why would I use your card?
- parthdesai 8y agoIf you are in Canada, you absolutely need to use 1 credit card to have a decent credit history. Not having a credit history or having a bad credit history means you won't be able to get a mortgage, won't be able rent, won't be able to finance/lease a car. I'm pretty sure it works the same in US as well.
- closeparen 8y agoYes, but you may as well choose the credit card with the most advantageous reward scheme. The fact that you need a credit card to establish history doesn’t make reasonable to choose a card with suboptimal rewards.
- parthdesai 8y agoBut the parent clearly says "The only reason many of us use credit cards is to collect points". Unless, of course only reason means something else.
- Consultant32452 8y agoHere's my anecdotal experience in the US. You can still find banks that will do manual underwriting for big loans like a mortgage. 15-ish years ago when I had no credit history I was able to rent an apartment, but I had to leave a bigger deposit, 3 months instead of the standard 2. I bought a car with no credit, but I bought it at a small buy here pay here lot whose customers often have bad credit. I didn't try a big dealership for a new car.
- skellera 8y agoIt's obvious there will be some sort of incentive. Apple Pay currently gets bonus discounts for various online retailers. Like Amazon gives 5% back on Amazon/Whole Foods purchases, expect Apple to do something as well.
- _ph_ 8y agoI hope that also means, that Apple Pay becomes truely available in central Europe. It is currently completely missing in Germany, and in France, while being availabe, it is only via less known banks. If Apple can't work out an agreement with the traditional big banks, having their own offering might help making Apple Pay available. (I have never understood why Apple Pay can't just charge the same credit card, the App Store uses)
- zaksoup 8y agoApple Pay can't just charge the credit card on file with iTunes because Apple doesn't actually store bare card numbers for Apple Pay payments. They use the card number you input to access the provider's network and get a token, which they then use to actually make transactions. The provider has to have agreed to integrate with Apple's systems to generate those tokens. They have a good write-up of how the system works here: https://support.apple.com/en-us/HT203027 https://support.apple.com/en-us/HT203027 Key part: > Again, neither Apple nor your device sends your actual payment card number. Before they approve the payment, your bank, card issuer, or payment network can verify your payment information by checking the dynamic security code to make sure that it’s unique and tied to your device. Apple Pay requires tight integration with the actual Provider of your card to authorize every transaction. For contrast, Samsung Pay works by sending the bare card number to card-reader device by emulating magnetic fields. It's exactly as if you swiped the card, which is why it works with almost every card, and almost every card reader. It doesn't have any of the security benefits or guarantees of Apple/Android Pay, though.
- dpcx 8y agoI think you're both saying the same thing, though. If Apple makes their own credit card and has a tight relationship with Goldman, it's more likely that Apple will be able to "force" the card to be used with Apple Pay.
- zaksoup 8y agoNo disagreement from me here. I was just commenting on the mechanics of apple pay and why they can't just use the card on file with App/iTunes store.
- bboreham 8y agoApple already have a credit card with Barclays (as mentioned in TFA). This is just them moving from one partner to another.
- getpost 8y agoI wish Apple hadn't selected the Vampire Squid[0,1]. Are there any ethical financial services providers? EDIT: Service providers at scale, I mean. It's a serious question. Would you trust Wells Fargo? Bank of America? These criminal organizations get a cut of nearly everyone's transactions. There needs to be an alternative, and it's too bad a company with the resources that Apple has can't or wont do better. [0] https://www.rollingstone.com/politics/news/the-great-american-bubble-machine-20100405 https://www.rollingstone.com/politics/news/the-great-america... [1] https://www.forbes.com/sites/jakezamansky/2013/08/08/the-great-vampire-squid-keeps-on-sucking/#25432a5e7df8 https://www.forbes.com/sites/jakezamansky/2013/08/08/the-gre...
- dbasedweeb 8y agoNo, at a certain scale they’re more alike than not. GS is notably heinous because of their absurd scale, they’re not unique in terms of approach and ethics. At the scale Apple needs, all of the “good guys” were long since ground to chum; you don’t get that big in financial services, ethically.
- whoamiidontknow 8y agoOn the contrary they have little or no presnece in the consumer area they only deals with institutions. It seems to me they are insignificant in this space.