
Apple will reportedly launch a credit card with Goldman Sachs - praveenweb
https://www.theverge.com/2018/5/10/17339632/apple-goldman-sachs-credit-card-report
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dev1n
This is interesting because I was just exploring this idea around how all
companies eventually just become banks. The example I was thinking about
though was GE Capital. GE started out making stuff, then they became a bank.
General Motors started out making cars, then they became a bank. Many more
companies have venture arms which act like banks on a more intimate level. But
still..

This makes sense as there are only so many macbooks, iphones, cars,
generators, lightbulbs, etc.. to sell. Selling money is much much more
lucrative.

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martin_bech
Please name any bank thats more lucrative than Apple.

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martin_bech
I have no idea why im beeing downvoted, im directly replying to the parent
post which claims “This makes sense as there are only so many macbooks,
iphones, cars, generators, lightbulbs, etc.. to sell. Selling money is much
much more lucrative.”

Im pretty sure, that no bank is in the same profit/lucrative league as Apple.

~~~
anitil
While your point may or may not be correct, it was probably the tone of the
comment rather than the substance that people are responding to

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mikestew
I was _just_ looking this morning at the cards I have attached to Apple Pay.
It was then that I noticed the new card-like graphics for Apple Pay, and there
is language that makes "Apple Pay" sound an awful lot like a credit card. In
the information section for Apple Pay there are things like "Card details",
which lists it as "Discover Debit" with what looks to be a non-active PIN
(it's all zeros). "Some stores may require a PIN to complete transactions with
your _Apple Pay Cash card_."

Granted, it's all just verbiage, but Apple launching some kind of financial
instrument wouldn't shock me.

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jonknee
People can send you money through iMessage and you can then use that money for
payments at places that both support Apple Pay and take Discover.

~~~
SOLAR_FIELDS
FWIW it hasn't worked too well overseas. I tried it in Sweden and my "normal"
credit card works but whatever vendor they were using at Pressbyrån did not
like whatever setup Apple has (they took discover)

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_ph_
I hope that also means, that Apple Pay becomes truely available in central
Europe. It is currently completely missing in Germany, and in France, while
being availabe, it is only via less known banks. If Apple can't work out an
agreement with the traditional big banks, having their own offering might help
making Apple Pay available. (I have never understood why Apple Pay can't just
charge the same credit card, the App Store uses)

~~~
zaksoup
Apple Pay can't just charge the credit card on file with iTunes because Apple
doesn't actually store bare card numbers for Apple Pay payments. They use the
card number you input to access the provider's network and get a token, which
they then use to actually make transactions. The provider has to have agreed
to integrate with Apple's systems to generate those tokens. They have a good
write-up of how the system works here: [https://support.apple.com/en-
us/HT203027](https://support.apple.com/en-us/HT203027)

Key part:

> Again, neither Apple nor your device sends your actual payment card number.
> Before they approve the payment, your bank, card issuer, or payment network
> can verify your payment information by checking the dynamic security code to
> make sure that it’s unique and tied to your device.

Apple Pay requires tight integration with the actual Provider of your card to
authorize every transaction.

For contrast, Samsung Pay works by sending the bare card number to card-reader
device by emulating magnetic fields. It's exactly as if you swiped the card,
which is why it works with almost every card, and almost every card reader. It
doesn't have any of the security benefits or guarantees of Apple/Android Pay,
though.

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odensc
> For contrast, Samsung Pay works by sending the bare card number to card-
> reader device by emulating magnetic fields. It's exactly as if you swiped
> the card, which is why it works with almost every card, and almost every
> card reader.

This is incorrect. Samsung Pay uses a tokenized PAN (credit card number) over
both MST and NFC. It does not transmit the original bare card number.
[https://developer.samsung.com/tech-
insights/pay/tokenization](https://developer.samsung.com/tech-
insights/pay/tokenization)

~~~
zaksoup
Thanks for the correction!

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bboreham
Apple already have a credit card with Barclays (as mentioned in TFA). This is
just them moving from one partner to another.

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getpost
I wish Apple hadn't selected the Vampire Squid[0,1]. Are there any ethical
financial services providers?

EDIT: Service providers at scale, I mean. It's a serious question. Would you
trust Wells Fargo? Bank of America? These criminal organizations get a cut of
nearly everyone's transactions. There needs to be an alternative, and it's too
bad a company with the resources that Apple has can't or wont do better.

[0] [https://www.rollingstone.com/politics/news/the-great-
america...](https://www.rollingstone.com/politics/news/the-great-american-
bubble-machine-20100405) [1]
[https://www.forbes.com/sites/jakezamansky/2013/08/08/the-
gre...](https://www.forbes.com/sites/jakezamansky/2013/08/08/the-great-
vampire-squid-keeps-on-sucking/#25432a5e7df8)

~~~
dbasedweeb
No, at a certain scale they’re more alike than not. GS is notably heinous
because of their absurd scale, they’re not unique in terms of approach and
ethics. At the scale Apple needs, all of the “good guys” were long since
ground to chum; you don’t get that big in financial services, ethically.

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whoamiidontknow
On the contrary they have little or no presnece in the consumer area they only
deals with institutions. It seems to me they are insignificant in this space.

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clintonb
Goldman Sachs has a consumer presence:
[https://www.marcus.com/us/en](https://www.marcus.com/us/en)

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49bc
This is GE capital, which they purchased for this purpose and seems to be the
arm they’re using with Apple.

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clintonb
I realize this is a late reply. GE Capital was a loan organization. Marcus
also offers checking and savings accounts, which were built in-house at
Goldman Sachs. I interviewed for a job to work on the project.

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gregimba
I used to have a final card. I wish I could have just been rolled over into
this instead of having to sign up for another card.

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tootie
GS has been pushing hard into retail banking and is also trying to repair
their brand perception.

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jbob2000
Bad idea Apple. The only reason many of us use credit cards is to collect
points. Without the incentive of earning points to spend on flights and
merchandise, why would I use your card?

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parthdesai
If you are in Canada, you absolutely need to use 1 credit card to have a
decent credit history. Not having a credit history or having a bad credit
history means you won't be able to get a mortgage, won't be able rent, won't
be able to finance/lease a car. I'm pretty sure it works the same in US as
well.

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closeparen
Yes, but you may as well choose the credit card with the most advantageous
reward scheme. The fact that you need a credit card to establish history
doesn’t make reasonable to choose a card with suboptimal rewards.

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parthdesai
But the parent clearly says "The only reason many of us use credit cards is to
collect points". Unless, of course only reason means something else.

