Roger Fingas
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.
Other interested bidders included Barclays, Synchrony and JP 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. That should in fact make it a safer bet versus Citi, CNBC suggested, since it doesn't have to overhaul any technology or jeopardize existing profit streams. At the same time, it will suddenly have to serve millions of card customers, and doesn't have any experience in the field.
"Goldman Sachs seeks to disrupt consumer finance by putting the customer first," claimed a spokesman. "We are excited for customers to use Apple Card, which is designed to help people take control of their financial lives."
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Credit card companies make tons of money on late fees, from the people who can least afford it. Then they raise the APR to ungodly heights because of it. CDs are paying less than 3% yet credit cards are charging 17-18-19% for revolving credit. That’s getting close to Payday and Car Title loan sharks.
It should worry everyone that all the normal entities in cc financing took a pill and Apple ended up with Goldman Sachs. Goldman.Sachs. Call me cynical, but I feel Goldman, in typical Goldman fashion, found a way to make this venture potentially profitable in ways the others didn't. How that potential profitability will affect cardholders... it's Goldman. I don't have confidence the affect will be positive.
Hopefully I'm wrong because at the end of the day it's average people that could be affected. Maybe Goldman has cha-
"Goldman Sachs seeks to disrupt consumer finance by putting the customer first," claimed a Goldman Sachs spokesman. "We are excited for customers to use Apple Card, which is designed to help people take control of their financial lives."
↑↑ Should put everybody on edge.
"Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez announced new legislation Thursday to cap credit card interest rates at 15%, a move that they said will help protect consumers from the "greed" of the credit card and banking industries."
USA Today, May 9, 2019
Before people start screaming about this being political, just think about what AI is saying in this article about Citigroup. Credit Card companies are today's LEGAL loansharks and very few people in our government are doing anything to stop it.
"Goldman Sachs seeks to disrupt consumer finance by putting the customer first," claimed a Goldman Sachs spokesman. "We are excited for customers to use Apple Card, which is designed to help people take control of their financial lives."
At least there is one company trying to buck the trend. I'm sure Goldman Sachs and Apple are still making some money on this deal but like medical insurance companies, there's no reason why credit cad companies should be making a vulgar amount of money doing practically nothing.