There's ZERO chance that Amex takes over the Apple Card. They don't have the risk tolerance for the kind of acceptance rate that Apple wants.
Amex thrives on membership fees and an extreme analytical approach to a consumer's income, spend habits, and payment abilities. Apple isn't going to allow that.
Synchrony is the best partner for them whether you like it or not. They deal with sub-prime to prime borrowers all the time and know how to run a business based around that. The only other competitor in that space would be Bread/Comenity.
@TiggerDat wrote:Apple Sacks Sachs, soon Apple bags Credit One
Capital One will do it and find ways to make you pay fees outside of what Apple wants.... They have a history for finding a way around things.... Maybe Credit One will bite.....?
I doubt Amex would do it. It's true that they are more conservative than Apple guidelines, which also rules out US Bank.
With the way banks are going towards MasterCard and Amex as a processor, then fintech might be the way around it to get Visa's name out there a bit more.
Apple might even have to give a little to find a suitor. For example, allow a tier system. Realistically, does everyone who gets the card deserve a Titanium card or no fee? Maybe a way for Apple to keep Sachs is to allow them to charge some fees for the lower tier credit individuals (hey I used to be one...) and simply give them a plastic card.
Tier 1 - Apple Fuji Card - No preset spending limit, low interest rate, titanium card, $295 but includes subscription to Apple Family plan and Apple fitnes, no other fees, ability to add up to 100 cards to your Apple wallet (seriously, why is there a limit to 16 cards?)
Tier 2 - Apple MacIntosh Card - limits up to $20,000, low interest rate, titanium card, no fees
Tier 3 - Golden Deliscious Card - limits up to $5,000, middle interest, plastic card no over the limit fees, but lates fees maybe
Tier 4 - HoneyCrisp Card - limits up to $1000, middle to higher interest, plastic, annual fee of $25, late fees over the limit fees, etc.
Tier 5 - Granny Smith Card - secured card with an annual fee of $39, paper card like a McDonalds gift certificate (joking), late fees, over the limit fees, etc.
Titanium card sounds fancy but realistically metal cards don't cost that much to make, it's a small piece of sheet metal and some plastic covering and/or etching. The included overnight delivery probably costs more than the card, they probably can get away with switching to USPS.
While these tiers might make sense for a lot of CC programs, I don't think it's something Apple is going to do. Apple likes to have the image of a premium lifestyle tech brand, a common plastic card doesn't sound right for them.
(Unless they can come up with a fancy-sounding name for plastic that is. If they can sell cheap stuff for a ton, yeah that sounds like Apple.)
I also think it's going to be Synchrony or Comenity. Big banks like Chase, Citi, especially US Bank and others won't touch this card with a ten foot pole. Amex won't get AF and other fees they like and they also don't like people not PIFing (Apple card also does the Apple product financing), so no Amex. Credit one will want more fees too. Maybe Capital One, but Apple Card might be too risky even for them. I think it'll be Synchrony or Comenity.
Whoever it ends up being, I hope they introduce an alternative website for managing the card. Both the website and the wallet app leave a lot to be desired.
