Apple will be launching its own “Apple Card” credit card later this summer in the United States as part of a partnership with Mastercard and Goldman Sachs. A new report claims Apple had discussed a partnership with Citigroup before it approached Goldman Sachs, but Citigroup backed off due to concerns that the deal might not be profitable enough.
Apple Card, which will be built into the Wallet app on the iPhone, and will also include a physical version for use at merchants that don’t yet accept contactless payments. Apple will collect no fees of any sort, and will offer one to three percent cash back which will be paid on a daily basis.
CNBC reports Citigroup was involved in intense negotiations with Apple to partner on the card, but pulled out of the negotiations due to doubts that it could earn enough of a profit from the partnership.
The report says other banks, including J.P. Morgan Chase, Barclays and Synchrony, also bid on the business. Apple and the banks declined to comment on the CNBC story. Unlike the other banks, Goldman Sachs doesn’t already offer its own consumer credit cards, leaving it free from worries of cannibalizing its own business.
“Goldman Sachs seeks to disrupt consumer finance by putting the customer first,” Andrew Williams, a spokesman for the New York-based bank, said in a statement. “We are excited for customers to use Apple Card, which is designed to help people take control of their financial lives.”