And the billion dollars is to pay the salaries, run the computers, etc
Running a big credit card company is expensive. Things like PCI compliance make it far more complex than a regular company with extra staff just handling compliance functions.
I’d also assume Apple require competent support staff, minimal automation, etc which raises the cost again, but delivers a better product. Support for AppleCard through GS is really good.
Then making and physically mailing anything adds costs.
The cost is also the whole retail unit, which includes Marcus banking and other products, not just AppleCard.
Goldman can just immediately pull the plug. They’ll have contracts with Apple to provide the service with long notice periods before stopping.
If Goldman just turned it off Apple would sue them out of existence. Apple is far larger and richer than Goldman.
Goldman would never get another partnership deal done with anyone else either. It destroys long term credibility.
As for people not paying debts, the debt remains but costs money to pay debt recovery teams to get back, or can be sold, but at a loss.
And the billion dollars is to pay the salaries, run the computers, etc
Running a big credit card company is expensive. Things like PCI compliance make it far more complex than a regular company with extra staff just handling compliance functions.
I’d also assume Apple require competent support staff, minimal automation, etc which raises the cost again, but delivers a better product. Support for AppleCard through GS is really good.
Then making and physically mailing anything adds costs.
The cost is also the whole retail unit, which includes Marcus banking and other products, not just AppleCard.