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Goldman Sachs bailed out Apple Card after Citigroup foreclosed on it

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Apple Card is fast approaching, and I wouldn't be surprised to get more details about it next week at WWDC, Apple's developer conference. With iOS 13 on the way, and Apple Card slated to release this summer, it would make sense to see Tim Cook and team unveil even more details about the credit card that is set to disrupt one of the largest financial industries in the world. While Apple is bringing the Apple Card to market with Goldman Sachs, a new report by CNBC brings to light some of the details about who else was involved in the bid for the Apple Card, and why some even left a potential partnership entirely.

Citigroup, one of the largest financial institutions in the world, was apparently deep in advanced talks with Apple over the potential exclusive partnership, but left amid negotiations out of fear that the card, with its consumer-first focus, wouldn't be profitable enough for the bank. J.P. Morgan Chase, Barclays (who Apple is currently using if you want to finance a new Mac, iPhone, or iPad), and Synchrony were also in the running for the card, but it sounds like Citigroup had gotten further in the process than any of the others before bailing on the deal altogether.

Citi and other bank buildings

After the partnership with Citigroup fell through, it appears that Apple found its partnership with Goldman Sachs, a relatively new player to the consumer finance market. Marcus, Goldman's fee-free personal loan and high-yield savings account business, has been around for a few years and was the bank's first dive into the consumer financial market. In 2018, Goldman expanded this focus by acquiring Clarity Money, a popular money management app that helps consumers track their spending, save automatically, and even cancel unwanted subscriptions.

Goldman Sach's continued investment in consumer-first banking services and the scale at which they are accustomed to operating have apparently made them a good partner for Apple, and they obviously have also agreed to the features of Apple Card that other banks were not willing to: lower interest rates, no fees, and data privacy. With Apple's sheer number of iPhone users, it's hard to imagine that Goldman won't see a win with the Apple Card. Even with agreeing to no fees and an inability to share cardholder data to marketers, interest rate payments will more than make up for it.

Joe Wituschek
Joe Wituschek

Joe Wituschek is a Contributor at iMore. With over ten years in the technology industry, one of them being at Apple, Joe now covers the company for the website. In addition to covering breaking news, Joe also writes editorials and reviews for a range of products. He fell in love with Apple products when he got an iPod nano for Christmas almost twenty years ago. Despite being considered a "heavy" user, he has always preferred the consumer-focused products like the MacBook Air, iPad mini, and iPhone 13 mini. He will fight to the death to keep a mini iPhone in the lineup. In his free time, Joe enjoys video games, movies, photography, running, and basically everything outdoors.

2 Comments
  • Can the author or someone please explain the use of the word “foreclosed” in the headline of this blog?
  • That's just me taking an opportunity to use some cute banking lingo when talking about banking since they passed on the deal 🤷🏻‍♂️