Investment banking company Goldman Sachs Group Inc. has announced that it will issue credit cards for GM by September of 2021.
According to a recent report from Reuters, Goldman Sachs secured the deal with a winning bid over British multinational financial services company Barclays Plc. General Motors’ credit card business is worth a reported $2.5 billion.
Although both GM and Goldman Sachs declined to provide specific details on the new credit card deal, it was confirmed that MasterCard will continue to provide the network for the General Motors card.
The new deal with GM will be Goldman Sachs’ second major credit card partnership, following the launch of a new credit card with Apple in 2019. In conjunction with the deal with Apple, this latest foray into the consumer banking sector from Goldman is likely in response to high instability in areas like trading and investment banking, with the consumer banking expansion expected to “even out” otherwise volatile results.
GM offers credit cards to fleet and retail customers, as well as a separate card for General Motors employees and their families. The retail card provides an opportunity for users to earn cash back rewards, which can then be used for the purchase of a new GM vehicle, including models from Buick, Cadillac, Chevrolet, and GMC. Alternatively, the rewards can be used to purchase things like GM accessories or certified service.
Meanwhile, employee and fleet cards also provide an opportunity for users to earn cash back rewards, with earnings used in a slightly different manner than those earned with the retail card.
As GM Authority covered earlier in the month, GM card members are offered $1,000 in bonus earnings with the purchase of a new Buick, Chevy, or GMC vehicle through January and February. The promotion is open to card holders with membership since January 4th, 2021, or earlier. The $1,000 bonus earnings can be used for the purchase or lease of an eligible GM vehicle, including those from both the 2020 and 2021 model years.