Citigroup (C - Get Report) exited negotiations with Apple (AAPL - Get Report) for its new credit card, the Apple Card, due to profitability concerns for the consumer-friendly product, according to a CNBC report Monday.
Goldman Sachs (GS - Get Report) eventually stepped into Citi's place, though Citi was already in advanced stages of negotiations for the card, reportedly. JPMorgan Chase (JPM - Get Report) , Barclays (BCS) and Synchrony (SYF - Get Report) were also bidding on the business.
The Apple Card has such consumer-friendly features as no fees of any kind, software that encourages users to avoid debt or pay it down quickly, and potentially lower interest rates. These features contributed to Citi pulling out of negotiations due to the lower rate of return expected from the card.
"Goldman Sachs seeks to disrupt consumer finance by putting the customer first," Goldman spokesperson Andrew Williams told CNBC. "We are excited for customers to use Apple Card, which is designed to help people take control of their financial lives."
Citigroup shares are down 0.12% at the Tuesday open while Apple shares are up 0.64% Monday.
Apple, Citigroup and JPMorgan are all key members of Jim Cramer's Action Alert PLUS charitable trust.