6 ms·

Maybe, but the actual "bank" in this arrangement is Goldman Sachs, and they are one of the more established players in finance.

JumpCrisscross 3y ago
> the actual "bank" in this arrangement is Goldman Sachs, and they are one of the more established players in finance Cupertino is also hosing Goldman in this relationship [1]. [1] https://9to5mac.com/2023/02/16/apple-card-future-goldmans-sachs-losses/ https://9to5mac.com/2023/02/16/apple-card-future-goldmans-sa...
- shagie 3y ago
  That needs to be put into context of the cost to acquire a customer. https://en.wikipedia.org/wiki/Customer_acquisition_cost https://en.wikipedia.org/wiki/Customer_acquisition_cost Various sources: $80 https://askwonder.com/research/average-customer-acquisition-cost-bank-pays-acquire-credit-card-customer-i-m-fy512dtei https://askwonder.com/research/average-customer-acquisition-... > The short version is that it costs around $80 to acquire a customer who returns about $120 in profit. https://medium.com/unifimoney/changing-the-vicious-cycle-of-push-to-pull-in-customer-acquisition-6218c8644000 https://medium.com/unifimoney/changing-the-vicious-cycle-of-... > It costs on average around $200 to acquire a credit card customer in the US (up to and beyond $1,000 if they are affluent cards like MasterCard World Elite and Visa Infinite). https://runningwithmiles.boardingarea.com/apple-card-customer-acquisition-cost/ https://runningwithmiles.boardingarea.com/apple-card-custome... > The Apple Card doesn’t need any affiliates or marketing yet analysts say that this new card has a customer acquisition cost of $350 and will take several years for Goldman Sachs to turn a profit on it. --- So the corresponding part of that is "we spent a lot to get a lot of customers. If they remain loyal, then GS will have something quite profitable for a long time." Spending $350 per customer is more than the $200 mentioned... but also much less than the $1000 for high end cards (and the tales of Chase Sapphire Reserve).

JumpCrisscross 3y ago

> the actual "bank" in this arrangement is Goldman Sachs, and they are one of the more established players in finance Cupertino is also hosing Goldman in this relationship [1]. [1] https://9to5mac.com/2023/02/16/apple-card-future-goldmans-sachs-losses/ https://9to5mac.com/2023/02/16/apple-card-future-goldmans-sa...

shagie 3y ago
That needs to be put into context of the cost to acquire a customer. https://en.wikipedia.org/wiki/Customer_acquisition_cost https://en.wikipedia.org/wiki/Customer_acquisition_cost Various sources: $80 https://askwonder.com/research/average-customer-acquisition-cost-bank-pays-acquire-credit-card-customer-i-m-fy512dtei https://askwonder.com/research/average-customer-acquisition-... > The short version is that it costs around $80 to acquire a customer who returns about $120 in profit. https://medium.com/unifimoney/changing-the-vicious-cycle-of-push-to-pull-in-customer-acquisition-6218c8644000 https://medium.com/unifimoney/changing-the-vicious-cycle-of-... > It costs on average around $200 to acquire a credit card customer in the US (up to and beyond $1,000 if they are affluent cards like MasterCard World Elite and Visa Infinite). https://runningwithmiles.boardingarea.com/apple-card-customer-acquisition-cost/ https://runningwithmiles.boardingarea.com/apple-card-custome... > The Apple Card doesn’t need any affiliates or marketing yet analysts say that this new card has a customer acquisition cost of $350 and will take several years for Goldman Sachs to turn a profit on it. --- So the corresponding part of that is "we spent a lot to get a lot of customers. If they remain loyal, then GS will have something quite profitable for a long time." Spending $350 per customer is more than the $200 mentioned... but also much less than the $1000 for high end cards (and the tales of Chase Sapphire Reserve).