3Semana·

Visa, American Express Bidding to Win Apple Credit-Card Network

Visa has made Apple an offer of around 100 million dollars to secure the Apple Card. The background to this is that Goldman Sachs is withdrawing from the consumer credit business and the card will be reissued. In addition to Visa also fight American Express and Mastercard for the role of card network. Visa has made an aggressive offer, while American Express is competing as both issuer and network. Mastercard wants to retain its position as a network. The deal would be the end of Goldman's Goldman's failed attempt in the consumer credit business, which Apple which is worth around 20 billion dollars.

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Source: https://www.tradingview.com/news/DJN_DN20250401009397:0/

5 Comentários

Thomas Hauck@tomtom38

3Semana

20 billion a year?? The question is what the margin is on the deal

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Peter A.@Kamahl_

3Semana

I worked at AXP for several years and many people have failed with credit cards. There are enough banks that don't offer them. The credit risk, fraud risk, regulation,... is very special in this area. Good luck to whoever gets the portfolio. If GS has done this for the first time, it's probably pretty garbage.

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finanzperpetuum@finanzperpetuum

3Semana

@Kamahl_ A few days ago, I decided to use $AXP for my custody account. I like the fact that they offer everything, they are issuers and operate the payment network and not just for AMEX itself. I don't think the customer base is quite so dependent on the economy, it's more people who don't have to look at the penny, so the risks you mentioned are perhaps somewhat lower. And expansion hopefully well considered, as they always have to build up everything themselves. Let's see ... I also got the Platinum card. I like the rental car package and as a frequent user and campaigner of $SIX2 I hope it's very practical.

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Peter A.@Kamahl_

2Semana

@finanzperpetuum Amex's portfolio is really solid for a KK portfolio and has done extremely well historically. We were also always better compared to our competitors. We also cleaned up properly in 2020. Everything that smelled of risk was thrown out and the acquisition was adjusted. Steve, the CEO, is extremely cautious and has been with Amex for 30 years. He used to work in risk management there himself, which is unusual for a CEO. His guidance was also always on spot. If he said there would be x% EPS growth, then it was. No idea how he always manages that. A very solid company.

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Peter A.@Kamahl_

2Semana

@finanzperpetuum and the closed network you mention is just mega. You can target customers extremely well. The marketing colleagues always had the joke "we know when the cardholder gets divorced" 😅 That's a big advantage in the area that banks or payment processors like Visa don't have. As you also said, if someone spends X amount on a credit card, they're not as vulnerable if inflation rises or they don't lose their job in an economic crisis

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