- cross-posted to:
- tech@kbin.social
- cross-posted to:
- tech@kbin.social
Report: Apple to end partnership with bank that backs Apple Card, savings accounts::Goldman Sachs has lost billions of dollars on its consumer-focused businesses.
Report: Apple to end partnership with bank that backs Apple Card, savings accounts::Goldman Sachs has lost billions of dollars on its consumer-focused businesses.
Removed by mod
True, but the business still pays them plenty. It’s not so much that they lose money, it’s they they earn less.
Removed by mod
That’s just mismanagement and inflated input costs. The average cc company is happy either way. Idk what it is with Goldman but they mucked up consumer banking too.
Removed by mod
That could be true, I don’t know honestly.
But then it’s an issue of bad fee structures, or rather overestimating defaulter numbers. It’s not like the amount of money you make from fees reduces as your interest earnings go up, so - if this is indeed the cause - the only thing I can conclude is that to meet their total projected earnings they assumed people would default en masse. Bad long term business and slim margins if you ask me.
At the same time I have a hard time not drawing a parallel between this and GS Marcus. Apple had nothing to do with the latter and both went under (effectively), with both being forays into regular consumer services for GS.
Then again I’m just an armchair general. What do I know.
Removed by mod
Didn’t know they were so generous with the terms. But I meant the fees they charge merchants. At least that’s how the business usually works if I’m not mistaken. Biggest cut of the merchant fee goes to the issuer bank, a smidge to the payment network, and a smalish portion to the merchant bank. Apple usually takes a portion of the issuer bank’s cut (in this case GS)
Removed by mod
Of course what could have happened is that that cut was way bigger then the usual Apple Pay deal.