Corecard: Like a small company, the credit card business for Apple turned around

Apple’s in -house credit card, the Apple Card, got a lot of praise when it was introduced almost six years ago: it is free of charge, offers a comparatively high cashback, makes it easy to pay off the total amount and comes without the additional fees that are often difficult to understand by many other providers. As it turns out, parts of these user -friendly features do not come from Apple itself: a smaller company specializing in digital payment processing provided the necessary technology. The reports the Wall Street Journal in a background article that was published on the last Sunday. The company called Corecard Now, however, is faced with a problem: According to reports, Apple is planning to move from bank partner Goldman to the Great Bank JPmorgan Chase – and that could now take on the role of the company as a so -called processor.

More overview and the invoice always the most monthly

Corecard ensured that it made it possible to always send out the credit card statement on the 1st of one month-for example, what is virtually not known in the US financial industry. A “payment wheel” directly on the invoice also shows customers how much they would pay in interest if they do not completely repay the amount. This is all the more important than that Apple also requires high interest rates for its Apple Card, which is up to 28.49 percent effective annual interest (APR).

The implementation of the invoice run alone is always the first month. This is useful for the users because they always know when the billing comes, but it also caused support problems with Apple’s bank partner Goldman. The slow customer care even brought Apple and the money house a penalty payment of the US finance supervision.

Euronet Worldwide buys Apple partner

In the end, Corecard is said to have made around 60 percent of its sales with Goldman – a large part of it with the Apple Card. After more and more realizing that Apple was looking for a new partner – Goldman himself has wanted to get out of the contract for the bank for several years – it also went down with Corecard on the stock exchange. It was generally considered agreed that the company from Atlanta would probably not work for Apple. In the meantime, Corecard has also been sold: to the company Euronet Worldwidea processing company with customers, especially in Europe and Asia that specializes in debit cards. Instead of the $ 400 million hoped for by the Corecard founders, the company paid just under 250 million in shares.

When JPMorgan Chase takes over the Apple Card is still unclear. The negotiations are still not completely in dry cloths. Also in the hover: the internationalization of the Apple Card that Goldman never succeeded. The credit card, which now now has 12 million customers in your home market, is only available in the United States.