Despite the end of the credit card partnership, Apple Pay continues to thrive
- Apple is looking to end its credit card partnership with Goldman Sachs within the next 12 to 15 months
- Goldman Sachs has suffered losses from its push into consumer lending
- Apple could find a new partner and continue its credit card program
- Potential partners for the card are American Express and Synchrony Financial
- Apple Pay processed $600 billion to $700 billion in payments last year
- Adoption of Apple Pay has accelerated in recent years
- Revenue from services accounted for 22% of Apple’s revenue for the fiscal year ending Sept. 30
- Apple’s strategy is to ‘land and expand’ through software and services
Apple is reportedly ending its credit card partnership with Goldman Sachs, but analysts believe that Apple Pay will continue to thrive. Goldman Sachs has suffered losses in consumer lending, leading to the potential breakup. However, Apple could easily find a new partner and continue its credit card program. Potential partners for the card are American Express and Synchrony Financial, both with experience in retail. Apple Pay has seen significant growth, processing billions of dollars in payments each year. Revenue from services, including Apple Pay, accounted for a significant portion of Apple’s overall revenue. Apple’s strategy is to ‘land and expand’ through software and services, keeping users within its ecosystem. Despite the recent news, Apple’s ambitions in financial services remain strong.
Public Companies: Apple Inc. (AAPL), Goldman Sachs (GS), GreenSky (), American Express (AXP), Synchrony Financial (SYF), PayPal (PYPL), Block (), Affirm ()
Private Companies:
Key People: Amit Daryanani (Analyst at Evercore ISI), Gene Munster (Co-founder and Managing Partner at Deepwater Asset Management), Lisa Ellis (Former MoffettNathanson Analyst)
Factuality Level: 7
Justification: The article provides information about Apple’s credit card partnership with Goldman Sachs and the potential end of the partnership. It also discusses the reasons behind the potential breakup and the implications for Apple’s financial services ambitions. The article includes quotes from analysts and experts, as well as data on Apple Pay’s adoption and revenue from services. Overall, the article presents factual information and opinions from various sources.
Noise Level: 6
Justification: The article provides some relevant information about Apple’s credit card partnership with Goldman Sachs and the potential reasons for its end. It also discusses Apple’s ambitions in financial services and the growth of Apple Pay. However, the article lacks in-depth analysis and evidence to support its claims. It also does not provide actionable insights or solutions.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses Apple’s financial services ambitions and its credit card partnership with Goldman Sachs.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article focuses on Apple’s financial services ambitions and its credit card partnership, but does not mention any extreme events or their impact.
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