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.


This article, "Citigroup Reportedly Passed on Apple Card Due to Profitability Concerns" first appeared on MacRumors.com

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Citibank Now Offers Apple Pay in Australia, Singapore, and Hong Kong

Citi today announced that its credit cards issued in Australia, Singapore, and Hong Kong can now be used with Apple Pay, followed by Taiwan later this year.


Citi cardholders can activate Apple Pay by opening the Wallet app, tapping the plus sign in the top-right corner, tapping the continue button, and positioning the credit card into the on-screen frame or entering the card details manually.

Apple Pay is accepted at thousands of locations with contactless payment systems in each country. A compatible iPhone, iPad, or Apple Watch is required.

In related news, Apple today announced that Apple Pay will soon be offered by BBVA, the second largest bank in Spain. Bankia, the fourth largest bank in Spain, also remains listed as coming soon on the localized Apple Pay page for Spain.

Related Roundup: Apple Pay

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