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.
Popular Stories
Apple is set to release iOS 18.2 next month, bringing the second round of Apple Intelligence features to iPhone 15 Pro and iPhone 16 models. This update brings several major advancements to Apple's AI integration, including completely new image generation tools and a range of Visual Intelligence-based enhancements. There are a handful of new non-AI related feature controls incoming as well....
The M4 MacBook Pro models feature quantum dot display technology, according to display analyst Ross Young. Apple used a quantum dot film instead of a red KSF phosphor film, a change that provides more vibrant, accurate color results.
Young says that Apple has opted for KSF for prior MacBook Pro models because it doesn't use toxic element cadmium (typical for quantum dot) and is more...
Wednesday November 13, 2024 11:01 am PST by
Juli CloverA trio of Apple customers this month filed a class action lawsuit against Apple, accusing the Cupertino company of violating California consumer protection laws and false advertising for continuing to sell AirPods Pro models that had ongoing issues with crackling or static sounds.
A few months after the AirPods Pro came out in October 2019, buyers began to complain about crackling, rattling, ...
Google has launched its dedicated Gemini artificial intelligence app for iPhone users, expanding beyond the previous limited integration within the main Google app. The standalone app offers enhanced functionality, including support for Gemini Live and iOS-specific features like Dynamic Island integration.
The new app allows iPhone users to interact with Google's AI through text or voice...
Wednesday November 13, 2024 11:59 am PST by
Juli CloverApple last week replaced the M3 Max MacBook Pro with the new M4 Max MacBook Pro, and we picked up one of the new high-end MacBook Pro machines to see how it compares to the prior model with both benchmarks and real-world tests.
We tested an M4 Max with a 16-core CPU, 40-core GPU, and 48GB RAM against an M3 Max MacBook Pro with similar specs. The two machines look similar, but the display on...
With iOS 18, Apple introduced a feature that causes the iPhone to reboot every three days, security researchers have confirmed (via TechCrunch). In a demo video, security researcher Jiska Classen proved that an iPhone left untouched for 72 hours will automatically restart, and Graykey manufacturer also Magnet Forensics wrote a blog post about the feature.
After a reboot, an iPhone is more...
