I mean, if any company has the resources and bandwidth to spin up an in-house operation, it’s Apple. I’m sure they’re, at the very least, considering going partnerless.
Especially since, given Goldman’s experience, I’m sure any contract with a new partner would pass more of the losses on to Apple than previously.
Isn’t that hyperbole? They’re not doing banking, they’re running a rewards program that has a vague dollar value but really serves no function of a traditional bank.
they turned airlines into something more like financial institutions that happen to fly planes on the side
For example here they’re hedging. It’s like financial institutions.
Here’s how the system works now: Airlines create points out of nothing and sell them for real money to banks with co-branded credit cards.
So, they’re like banks if they partner with banks to run a program.
This argument does not pass the sniff test to me. It’s just The Atlantic selling a narrative so their readers can talk about something to sound clever.
I mean, if any company has the resources and bandwidth to spin up an in-house operation, it’s Apple. I’m sure they’re, at the very least, considering going partnerless.
Especially since, given Goldman’s experience, I’m sure any contract with a new partner would pass more of the losses on to Apple than previously.
Throwing money at a problem solves nothing.
Which airlines run a bank?
Almost all of them!
Isn’t that hyperbole? They’re not doing banking, they’re running a rewards program that has a vague dollar value but really serves no function of a traditional bank.
For example here they’re hedging. It’s like financial institutions.
So, they’re like banks if they partner with banks to run a program.
This argument does not pass the sniff test to me. It’s just The Atlantic selling a narrative so their readers can talk about something to sound clever.
Starbucks is like the 7th biggest bank in the WORLD!
Technology companies venturing into financial services doesn’t usually go well. Ask GE