One of Goldman Sachs’ biggest rivals pulled out on a deal that would have made it the bank backing Apple Card.

Citigroup reportedly was in advanced negotiations with Apple but pulled out of the Apple Card deal due to doubts that it will be profitable.

Apple Card was unveiled during a keynote at the Steve Jobs Theater in March. The consumer-friendly credit card integrates with the iPhone’s Wallet app and tracks purchases and payments in an easy-to-understand interface. Cash-back rewards are offered on every purchase, with most purchases giving 2% cash back and purchases on Apple products getting 3% cash back.

While Apple Card is being praised for being consumer-friendly with zero fees of any kind, the banking industry see a lot of risks for Goldman Sachs.

“Dude, if that portfolio ever makes money, I’m buying you a beer,” texted an employee at one of Goldman Sachs’ competitors to a friend at the firm, according to CNBC.

Goldman Sachs’ research predicts that Apple Card will garner about 21 million users by the end of 2020 with card holders spending about $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 that revenue will be split.

Apple Card is set to launch this summer. An exact date hasn’t been announced yet, but we could find out more next week during the WWDC 2019 keynote.

Source: Cultofmac