Citigroup Reportedly Passed on Apple Card Due to Profitability Concerns

Discussion in ' News Discussion' started by MacRumors, May 28, 2019.

  1. MacRumors macrumors bot


    Apr 12, 2001

    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.

    Article Link: Citigroup Reportedly Passed on Apple Card Due to Profitability Concerns
  2. dannyyankou macrumors G3


    Mar 2, 2012
    Scarsdale, NY
  3. Wiesenlooser macrumors 6502a

    Jul 9, 2010
  4. zorinlynx macrumors 603


    May 31, 2007
    Florida, USA
    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.
  5. martyjmclean macrumors 6502


    Jan 24, 2018
    Sydney, NSW, Australia
    I don’t blame them, I’ve got a feeling this Apple Card won’t be as successful as Apple hopes. They can’t even launch Apple Cash outside America, what makes them think they can launch a credit card? Most countries (especially Europe) are very averse to credit cards.
  6. tCdemon macrumors member


    May 26, 2008
    Rossmoor, CA, USA
    So because Apple Credit Card isn't out to make extreme profit no bank want this? Sounds about right!
  7. alexandr macrumors 6502a


    Nov 11, 2005
    i think this is just a part of citi's plan to have me switch my finances elsewhere)
  8. dominiongamma macrumors 68000

    Oct 19, 2014
    Tempe, Arizona
    I would normally agree however they are betting Apple Credit Card won’t last long and the plug will be pulled in a few years.
  9. BootsWalking macrumors 65816

    Feb 1, 2014
    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.
  10. mashdots macrumors member


    Dec 10, 2015
    I'm curious as to why you think so.
  11. PastaPrimav macrumors 6502

    Nov 6, 2017
    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.
  12. Mike MA macrumors 68010

    Mike MA

    Sep 21, 2012
    Sometimes it’s about marketing and an investment to increase ones customer base. Probably especially when doing business with Apple profit often is generated at Apple itself.
  13. macduke, May 28, 2019
    Last edited: May 29, 2019

    macduke macrumors G4


    Jun 27, 2007
    Central U.S.
    I made a mistake, the Apple Card is not out yet. You guys can stop sending me messages and go away now.
  14. mattopotamus macrumors G5


    Jun 12, 2012
    Plus Citi has the DoubleCash, which is basically a better version of this.
    --- Post Merged, May 28, 2019 ---
    Doubtful. I cannot think of a single credit card that requires 800+. Amex Platinum and CSR (two of the most prestigious cards) don't have those requirements.
  15. G5isAlive macrumors 6502a

    Aug 28, 2003
    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
  16. 69Mustang macrumors 604


    Jan 7, 2014
    In between a rock and a hard place
    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
  17. uniquexoxo macrumors regular


    Aug 27, 2018
    South East Asia
    Of course. Fraudulent Banks like Citi won’t take on something they can’t put hidden charges on. ‍♀️
  18. realtuner macrumors 6502a


    Mar 8, 2019
    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?
  19. fourthtunz, May 28, 2019
    Last edited: May 28, 2019

    fourthtunz macrumors 65816


    Jul 23, 2002
    Does anyone else find this whole thing humorous?
    Like these banks are not all working together? :)
  20. macduke macrumors G4


    Jun 27, 2007
    Central U.S.
    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.
  21. Polymorphic macrumors regular

    Dec 23, 2010
    I like the Apple Card in theory, but there are already no-fee 2% cash-back credit cards out there. I have two of them, and use one of them for virtually all purchases. In a family of six, that 2% really adds up over the course of a year. I can't see using the Apple Card unless Apple increases the cash-back rate for the physical card.
  22. uniquexoxo macrumors regular


    Aug 27, 2018
    South East Asia
    Exactly. With a large balance, they can easily slip in some hidden charges here and there lol
  23. otternonsense macrumors 65816


    Jul 25, 2016
    It's more like Tim Apple running out of ideas for his "pipeline" and going after ultra-legacy credit territory that isn't even scalable outside of the US (unlike Apple Pay).

    Maybe the local US market rejoiced with one more piece of plastic complemented by cute UI, but this announcement has sure left the rest of the world cold.
  24. ocabj macrumors 6502a


    Jul 2, 2009
    After the Chase Sapphire Reserve card came out, I think that definitely caused most people to rethink AMEX. I still have AMEX, but I still struggle with the idea of cancelling it (or downgrading to Green).

    I'd still like to see the full benefits list for the Apple card. Purchase protection and extended warranty are pretty much staple benefits for a credit card, so hopefully those exist.
  25. mlody macrumors 6502a

    Nov 11, 2012
    Windy City

    I am in a similar boat. I have no desire to use the card as i also have 2 other credit cards with better deals; however i will still get it purely for the look and coolness.

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