Apple's Beats brand in April unveiled the Powerbeats Pro, a redesigned wire-free version of its popular fitness-oriented Powerbeats earbuds.
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.
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.
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.
Tags: Citi, Apple Card Guide
[ 115 comments ]
Top Rated Comments
(View all)
12 weeks 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.
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.
12 weeks 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
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
12 weeks ago
So because Apple Credit Card isn't out to make extreme profit no bank want this? Sounds about right!
12 weeks 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?
12 weeks 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
12 weeks 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.
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.
12 weeks ago
Lol I love the AMEX drones that have to find something to whine about with Apple Card.
Sorry. AMEX isn't the best thing on the block anymore.
Sorry. AMEX isn't the best thing on the block anymore.
12 weeks ago
Imagine that? A bank not wanting consumers to have complete control over their credit card spending or tools to help them avoid going into debt or spending beyond their means.
How can they make money if people don’t carry a large balance?
How can they make money if people don’t carry a large balance?
[ Read All Comments ]
Apple today sent out emails to customers about its latest Apple Pay promo, which will see the company donating $10 to the National Park Foundation for Apple Pay purchases made from the Apple...
We're just a few weeks away from the unveiling of this year's iPhone lineup as well as the official release of iOS 13 and Apple's other new operating system versions, and we're...
For this week's giveaway, we've teamed up with RAVPower to offer MacRumors readers a chance to win a 61W USB-C Power Adapter and a USB-C to Lightning cable, which can be used to fast charge...
Satechi this summer launched its first HomeKit-compatible product, the Dual Smart Outlet, a HomeKit plug that turns dumb appliances and electronics into smart electronics that can work alongside...
As we head into the weekend, there are a few notable deals going on today that include an all-new MacRumors exclusive offer from Eve, Best Buy's anniversary sale with lowest-ever iPad prices, and...
Version 7 of Heart Analyzer was released today, and the popular third-party heart-rate app for iPhone and Apple Watch has gained some additional features for users looking for even deeper insight...
Apple today seeded the seventh beta of watchOS 6, the software that runs on the Apple Watch. The new beta comes a week after the sixth beta and two months after Apple first unveiled the new watchOS...
Apple today seeded seventh beta of an upcoming tvOS 13 update to developers, one week after seeding the sixth beta and two months after unveiling the tvOS 13 software at the Worldwide Developers...
