Citigroup Reportedly Passed on Apple Card Due to Profitability Concerns

Apple is set to launch its own credit card this summer in the United States in partnership with investment bank Goldman Sachs and Mastercard. The aptly named Apple Card will be built into the Wallet app on the iPhone, with a physical version available for use at stores that do not accept contactless payments.

applecardinwallet
Apple is aiming to shake up the credit card industry by collecting no fees whatsoever, offering one to three percent cash back paid out on a daily basis, and providing consumers with interactive features such as color-coded spending summaries in the Wallet app to assist with spending and budgeting.

Now, a report says those consumer-friendly plans led some other banks to ultimately pass over the Apple Card opportunity.

According to CNBC, Citigroup was in advanced negotiations with Apple over the card, but pulled out amid doubts that it could earn an acceptable profit on the partnership. The report claims that other banks, including J.P. Morgan Chase, Barclays, and Synchrony, also bid on the ‌Apple Card‌ business.

Goldman Sachs has an advantage over those other banks since it does not already offer its own consumer credit cards, so it does not have to worry about potentially cannibalizing one of its own businesses.

"Goldman Sachs seeks to disrupt consumer finance by putting the customer first. We are excited for customers to use ‌Apple Card‌, which is designed to help people take control of their financial lives," a spokesperson for the bank told CNBC.

‌Apple Card‌ support will likely be added in iOS 12.4, with some Apple employees already receiving their physical version of the card.

Top Rated Comments

BootsWalking Avatar
20 months ago
Goldman Sachs seeks to disrupt consumer finance by putting the customer first.

Like how Goldman put their Credit Default Swap customers first, when they stopped answering the phone when it came time for them to pay their customers' swaps, and even refusing to recognize the market price of those swaps that moved against them? Goldman only puts their customers first when it's profitable for them to do so. In other words, never.
Score: 16 Votes (Like | Disagree)
69Mustang Avatar
20 months ago
Citigroup: We can't make money on this deal.

Goldman: We can.

Citigroup: But how?

Goldman: Heh. Trust us.

Citigroup: [furtively checks back pocket for wallet] {gone} Hey Goldman, have you se-

/hears footsteps running away
Score: 15 Votes (Like | Disagree)
tCdemon Avatar
20 months ago
So because Apple Credit Card isn't out to make extreme profit no bank want this? Sounds about right!
Score: 13 Votes (Like | Disagree)
G5isAlive Avatar
20 months ago

Yeah, except that most people who actually need financial control and assistance aren't going to be able to get this card. Weren't people on the forums saying you need a credit score of 800 or higher? Seems to be another case of the rich keep getting richer. Not that people that have over 800 are rich, but you'd be very hard pressed to find any poor person with a score over 800. Mine is over 800 and I am not rich but comfortable, but a card like this when I was younger would have been useful.

So your whole comment is based on what you read in a forum here regarding something no one can really know? I have a bridge for you
Score: 12 Votes (Like | Disagree)
Lobwedgephil Avatar
20 months ago

I remember hearing reports from multiple people saying they were declined with scores in the mid to upper 700s. Haven't followed up since. Feel free to provide evidence instead of criticizing my comment.

The card isn't out yet, how were people declined?
Score: 12 Votes (Like | Disagree)
zorinlynx Avatar
20 months ago
I already have two credit cards and don't really desire a third, but I'd be lying if I said I wasn't considering this. It looks cool, has good terms and if I end up not using it, no harm at all.

I do wish they paid at least 1.5% cash back on physical card (non-Apple Pay) transactions, though. Chase gives me 1.5% cash back on everything, and Apple Pay acceptance is very hit or miss around here. Particularly restaurants tend to not take Apple Pay.
Score: 8 Votes (Like | Disagree)

Top Stories

0 Deals Hero

Black Friday 2020: Best Apple Deals to Plan For

Saturday November 21, 2020 10:00 am PST by
In the lead-up to Black Friday next week, we've been putting a spotlight on the best deals coming from various retailers like Best Buy and Walmart. In an effort to further prepare our readers for the best Black Friday deals, we're breaking down what we think should be on your radar for Black Friday in 2020. Note: MacRumors is an affiliate partner with some of these vendors. When you click a...
2020 apple shopping event

Apple Offering Up to $150 Gift Card With Select Products on Black Friday Through Cyber Monday

Monday November 23, 2020 2:53 am PST by
Apple has announced its annual four-day shopping event, offering customers up to a $150 Apple Store gift card with the purchase of select products between Black Friday and Cyber Monday in the United States. The gift card values in the United States are as follows: $150 for 16-inch MacBook Pro $150 for 21.5-inch iMac $50 for 13-inch MacBook Pro $50 for MacBook Air $50 for iPhone SE,...
m1 mac mini vignette

Apple Lists M1-Based Mac Mini Logic Boards With 10 Gigabit Ethernet in Internal Parts Ordering System

Friday November 20, 2020 9:32 am PST by
While the new Mac mini with the M1 chip is only available with Gigabit Ethernet, Apple has listed multiple M1-based Mac mini logic boards with 10 Gigabit Ethernet in an internal parts list for Apple Authorized Service Providers. For every Mac mini logic board with Gigabit Ethernet in the parts list, obtained by MacRumors, there is a corresponding logic board with 10 Gigabit Ethernet:...
ipad pro 2020 display

Black Friday Week Kicks Off With Up to $150 Savings on 2020 iPad Pro

Sunday November 22, 2020 2:37 pm PST by
As we head into Black Friday week, we're seeing some of the best deals of the season so far, with Amazon and Best Buy today discounting the latest iPad Pro models by up to $150 at the lowest prices we've ever tracked on these models. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which helps us keep ...
macos big sur m1 macs restore issue

Apple Provides Instructions to Fix macOS Reinstallation Errors on M1 Macs

Sunday November 22, 2020 3:30 pm PST by
Shortly after the launch of Apple's new M1 Macs, we saw reports that attempts to restore and reinstall macOS on those machines right away could result in an installation error that would leave your Mac non-functional. Specifically, the error message would read: "An error occurred preparing the update. Failed to personalize the software update. Please try again." Over the weekend, Apple p...
iPhone 6s main

Rumor Claims iOS 15 to Drop Support for iPhone 6s and Original iPhone SE

Sunday November 22, 2020 9:25 am PST by
Apple will drop support for the iPhone SE, iPhone 6s, and iPhone 6s Plus in next year's release of iOS 15, according to a rumor shared today by Israeli site The Verifier. If the rumor is accurate, that would mean iOS 15 will be compatible with the following Apple devices: 2021 iPhone series iPhone 12 Pro Max iPhone 12 Pro iPhone 12 mini iPhone 12 iPhone 11 iPhone 11 Pro iPhone 11 Pro ...
new m1 chip

Craig Federighi: Native Windows on M1 Macs is 'Really up to Microsoft'

Friday November 20, 2020 11:57 am PST by
Following the release of the M1 Macs Apple executives have been doing interviews with a range of publications, and today, Ars Technica published another interview with software engineering chief Craig Federighi, hardware technologies lead Johny Srouji, and marketing VP Greg Joswiak. Much of the interview focuses on topics that the three have already covered in prior discussions, but there is ...
Walmart November Deals Hero

Black Friday Spotlight: Walmart Will Have AirPods Pro Down to Lowest Price of $169, and More Apple Deals

Thursday November 19, 2020 8:05 am PST by
We've been tracking early Black Friday deals in our dedicated Black Friday Roundup, and in an effort to prepare our readers for the big shopping event we're highlighting sales store-by-store in the lead-up to November 27. Note: MacRumors is an affiliate partner with Walmart. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running. Next ...
xlK6MS4MLqVFaskl

iFixit Shares iPhone 12 Pro Max Teardown Revealing L-Shaped Battery and Bigger Camera Module

Sunday November 22, 2020 2:53 am PST by
In the last of its iPhone 12 series teardowns, iFixit has published its iPhone 12 Pro Max disassembly, which reveals some unique differences in the design of the internals, including the full extent of the larger camera system responsible for the improved low-light performance on Apple's largest iPhone to date. On opening the iPhone 12 Pro Max, the first obvious difference compared to the...
apple leather sleeve

Leather Sleeve for iPhone 12 Models Now Available From Apple

Friday November 20, 2020 12:16 pm PST by
Apple today began selling the Leather Sleeve for the new iPhone 12 models, with the accessory having first been announced alongside the updated iPhones in October. Priced at $129, the Leather Sleeve is not a case and is designed to be removed when the iPhone is in use. It features a cutout at the front that displays the time, and it comes with a matching leather strap. According to Apple, it ...