American Express appears uninterested in collaboration with Apple Card
American Express appears uninterested in collaboration with Apple Card
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American Express appears uninterested in collaboration with Apple Card
While American Express (Amex) might be considered by analysts as a potential operator to take over Apple Card, the CEO of the company seems less enthusiastic about this prospect.
The partnership between Goldman Sachs and Apple on the Apple Card started smoothly, but as 2023 unfolded, their relationship turned increasingly adversarial.
After several months of reports suggesting dissatisfaction on the part of Goldman Sachs, it is anticipated that the two companies will part ways in about a year.
In response to these reports, Apple issued a statement, stating that both companies are still “focused on providing our customers with an incredible experience to help them lead healthier financial lives. The award-winning Apple Card is widely popular among consumers, and we will continue to innovate to offer consumers the best tools and services.”
However, a separation between the two parties seems inevitable. Analysts believe that American Express or JPMorgan Chase might replace Goldman Sachs.
Yet, during the Goldman Sachs Financial Services Conference, when indirectly questioned about the matter, American Express CEO Steve Squeri seemed to pour cold water on this idea. According to a report by Payments Dive on Thursday, Squeri said, “When we look at co-brand relationships – we have over 50 co-brand relationships – you’re really looking for a collaboration that equals more than the sum of its parts.”
Squeri went on to say that when American Express establishes a partnership with Apple Card, there must be a “tremendous value proposition.” It is reported that one significant consideration for Amex is the positioning of high-end customers, as this aligns with the goal and distribution purpose of co-brand collaborations. The key questions are whether it adds value to both brands and creates premium economic benefits. “So, that’s the lens we use when evaluating these relationships,” Squeri added.
It is currently unclear whether Amex considers Apple Card holders to be “premium.” Reportedly, a sticking point between Apple and Goldman Sachs is Apple’s requirement for widespread acceptance, which is said to have led to significant losses for the lending institution.
Squeri concluded, “Sometimes, partners want to touch everybody, and that’s not necessarily our intent.”
