Citigroup bailed on Apple Card on worries about profits


Citigroup was in the running to become the U.S. financial partner for the Apple Card, but abandoned the effort late into negotiations because of worries about “acceptable profit,” a report claimed on Tuesday.

Apple Card on iPhone XS

Other interested bidders included Barclays, Synchrony, and J.P. Morgan Chase, said CNBC, citing multiple sources. Citigroup’s exact worries were unmentioned, but it’s suggested that the Apple Card may have been unattractive because of a lack of fees, the potential for lower interest rates, and app-based features that help people avoid debt or pay it down faster.

Apple introduced the Apple Card at its March 25 press event, partnering with Goldman Sachs. The card should launch in the U.S. sometime this summer, and while it will primarily be digital — letting people do same-day signups on their iPhone — there will also be a real-world titanium version that links with Apple’s Wallet app via NFC.

The Apple Card will in fact be Goldman Sachs’ first-ever credit card, a move into consumer finance intended to offset declining trading revenues.

This article was originally posted here