The Apple Card has been a multi- billion-dollar failure, but not for Apple…The one left holding the bag is actually their banking partner, Goldman Sachs. They have tarnished both their own reputation and Apple’s with this credit card. Goldman Sachs is now led by David Solomon, part banker, part professional DJ. No seriously…he is DJ D-Sol.

Their consumer bank called “Marcus” became a priority for the CEO but lately it has become apparent that Goldman and regular folks maybe just aren’t right for each other. Under this branch of consumer-focused products, Goldman launched “Platform Solutions” a fin-tech umbrella of services, including the Apple Credit Card. You might be thinking how did Goldman’s new consumer bank win such a potentially lucrative business from Apple, the largest tech company in the world…surely the big established consumer-focused banks such as JP Morgan Chase would be in a far better position to bid on this account. Well, it turns out in their desperation to enter the consumer-banking space, Goldman Sachs agreed to terms that were incredibly one-sided in Apple’s favor.

Now Apple has just launched “Pay Later.” A service where users can split purchases into four payments with zero interest and no fees. They are now directly competing against the other big “Buy Now, Pay Later” companies such as Klarna, Affirm and Afterpay. Unlike the Credit Card however Apple will be financially responsible for credit assessment and lending through a subsidiary called Apple Financing LLC. Goldman Sachs will still be involved in processing the back-end but they aren’t on the hook for this.
#applepaylater #applecreditcard

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