Citi pulled out of Apple Card talks on profitability fears - CNBC

|About: Citigroup Inc. (C)|By:, SA News Editor

Citigroup (NYSE:C) had been in advanced talks with Apple for its credit card, but pulled out amid concern that the partnership would general acceptable profits, CNBC reports, citing people familiar with the talks.

Other banks, including JPMorgan Chase, Barclays, and Synchrony also were contending for the Apple card.

The Apple Card's consumer-friendly features, including no fees of any kind, software that encourages users to avoid debt or pay it down quickly, and potentially lower interest rates, make it more difficult for banks to make money on the partnership.

Representing Goldman Sachs's (NYSE:GS) first foray into credit cards, it will test whether the bank can profitability build a consumer business in the the late stages of the U.S. economic expansion.

Citi slips 0.3% in premarket trading; Goldman falls 0.4%.

Subscribe for full text news in your inbox