One of Goldman Sach's largest rivals retired on an agreement that would have made it to the Apple Card bank card.
Citigroup was reportedly in advanced negotiations with Apple, but withdrew from the Apple Card deal because of doubt that it would be profitable.
Apple Card was unveiled under a keynote at the Steve Jobs Theater in March. The easy-to-use credit card integrates with the iPhone Wallet app and tracks purchases and payments in an easy-to-understand interface. Repayment fees are offered on each purchase, with most purchases giving 2% cash back and purchases on Apple products receiving 3% cash back.
While the Apple card is praised for being consumer friendly with zero charges of any kind, the banking industry sees a lot of risk for Goldman Sachs.
"Dude, if that portfolio ever makes money, I buy you a beer," one employee of one of Goldman Sachs & # 39; competitors of a friend at the firm told, CNBC .
Goldman Sachs & # 39; Research predicts that the Apple Card will provide around 21 million end-2020 users with cardholders spending around $ 1,000 per month. That would generate about $ 882 million in revenue. Only Apple and Goldman Sachs know the full terms of their deal and how the revenue is shared.
Apple Card is set to launch this summer. An exact date has not yet been announced, but we could find out more next week during WWDC 2019 keynote.