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NewsBriefs

This article contains excerpts from news stories recently posted under Goldman Sachs aimed to establish itself in retail pay-
Breaking Industry News on our homepage. For links to these and other ments, making the Apple card issuance a central part of
full news stories, please visit www.greensheet.com/breakingnews. its strategy.
php.
Over time, the partnership expanded to include a high-
yield savings account and a successful buy now, pay later
(BNPL) offering, which gained popularity quickly, with 19
percent of users surveyed by J.D. Power having used it in
the previous 90 days. Goldman faced challenges, however,
including losses due to Apple's broad card issuance ap-

Verizon Business, Mastercard expand SMB offerings proach that includes many subprime borrowers. Regula-
tory scrutiny and compliance issues further complicated
In partnership with Mastercard and First National Bank matters. This breakup is viewed as a temporary setback
of Omaha, Verizon Business launched initiatives in re- for Apple, as the company focuses on expanding its ser-
sponse to growing demand for anywhere commerce. The vices business. Speculation surrounds potential replace-
Verizon Business Card is designed to reward SMB owners ment issuers. JPMorgan Chase, which already handles
for office supply, technology and fuel purchases. In addi- merchant acquiring for Apple stores, is reportedly in talks
tion to rewards, the card offers enhanced security, theft with Apple.
protection and business apps, with no annual fee, Verizon Fintech ramped up lending
added. Tami Erwin, CEO of Verizon Business, emphasized
the company's commitment to leveraging the partnership to low-income consumers
to help businesses expand and thrive. Financial technology firms significantly increased lend-
ing to low- and moderate-income consumers, providing
Verizon and Mastercard are also exploring opportunities an alternative to traditional banks. However, a report from
to harness Verizon's 5G connectivity and Mastercard's the Federal Reserve Bank of New York warns of rising de-
global network. They see potential to enhance commerce linquencies that could challenge borrowers and lenders,
experiences via IoT, sensor connectivity, edge computing noting that Americans held $232 billion in unsecured
and fintech platforms. Key focuses, the companies stated, personal loan balances in mid-2023, with a significant in-
include connected device payments, touchless retail shop- crease in lending to below-prime credit borrowers.
ping, physical-digital convergence, SMB digital readiness,
enhanced bill pay, and fraud protection. Fintech lending has thrived, offering lower-cost credit op-
Holiday shopping kickoff exceeds expectations tions to borrowers often excluded by traditional institu-
tions, aided by a low-interest rate environment. Yet, with
A record-breaking 200.4 million Americans shopped dur- inflation and higher rates, delinquencies have climbed.
ing the five-day Thanksgiving weekend, surpassing last Delinquency rates for most consumer loans have risen
year's 196.7 million, with the average intended spend esti- from record lows seen in 2021 and 2022. Aggregate delin-
mated at $321.41, according to a survey by the National Re- quency rates increased by 3 percent in the third quarter
tail Federation and Prosper Insights & Analytics. This also this year, except for student loans and home equity lines
exceeded the NRF's earlier prediction of 182 million shop- of credit. In contrast, the "other" category, including many
pers for the holiday weekend, which researchers noted, nontraditional fintech loans, saw 5.78 percent of loans in
emphasizes the strength of the economy and consumer "serious delinquency" of 90 days or more.
resilience. U.S. consumers spent $105.2 billion online be-
tween November 1 and November 27, with Black Friday
($9.8 billion) and Cyber Monday ($12 billion) leading on- Call me today!
line spending. Buy now, pay later plans contributed sig- Let me help you
nificantly to online spending, and discounts drove much with your
of the shopping activity, particularly for televisions, sport- advertising
ing goods, computers, furniture and appliances. Fifty-five success.
percent of purchases were motivated by sales and promo-
tions, according to the NRF. Top gift purchases included 707-284-1693
clothing, toys, gift cards, books, video games, personal
care and beauty products.
Sour apples for Goldman Sachs-Apple partnership

In August 2019, Apple and Goldman Sachs formed a credit
card partnership with high hopes of revolutionizing the R R
credit card experience. However, last week, they revealed ick Aston
plans to end the partnership over the next 12 to 15 months. Senior Media Partnership Specialist
Rick@greensheet.com
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