Mike Wuerthele
American Express may be in the minds of analysts as an Apple Card lender replacement, but the company's CEO doesn't seem that excited about the prospect.
The dance pairing Goldman Sachs with Apple for Apple Card started well, but as 2023 has progressed, has turned increasingly hostile. After months of reports about a disgruntled Goldman Sachs, the companies are expected to part ways in about a year.
Apple chimed in on the reports, and said that the pair are still "are focused on providing an incredible experience for our customers to help them lead healthier financial lives. The award-winning Apple Card has seen a great reception from consumers, and we will continue to innovate and deliver the best tools and services for them."
However, the breakup seems imminent. And, analysts suggested that Goldman Sachs could be replaced by American Express or Chase.
But, when asked about it indirectly at the Goldman Sachs US Financial Services Conference, American Express CEO Steve Squeri seemed to throw cold water on the idea.
"When we look at co-brand partnerships - and we have over 50 co-brand partnerships - you're really looking for one plus one equals three," Squeri said without naming Apple Card specifically, as reported by Payments Dive on Thursday.
Squeri went on to say that there need to be "great value propositions" for American Express when there's a partnership like there would have to be for Apple Card. Reportedly, a big consideration for Amex is premium customer targeting.
"Because that's what you want a co-brand partnership for, is the distribution, as well," Squeri said. "And does it add value to both brands? And do you create premium economics? So, as we evaluate partnerships, that's the lens that we use."
It's not clear if Amex considers Apple Card holders "premium." Reportedly, one of the sticking points between Apple and Goldman Sachs was that Apple required very wide acceptance, which has reportedly lead to large losses for the lender.
"Sometimes the partner wants to reach into everybody, and that's just not who we are," Squeri added.
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35 Comments
Good, because I see no value in having an American Express card. They're not accepted most places any more, probably because their merchant fees are exorbitant.
Good. No need for another Amex based card.
family can easily add to their Suica.
The only reason I have an Amex card is because Costco used to use it as their main credit card. They changed to Visa, which helped because (if I remember correctly) Canada didn't take Amex Costco cards. I keep this card for credit score reasons, making one purchase annually to keep the account open.