Barclays has purchased the Gap credit card portfolio from Synchrony in a deal worth close to $4 billion. The acquisition of Gap’s credit cards is the latest step in the U.K.-based banking giant’s growing expansion into the U.S. marketplace – here are all the details:
Barclays Purchases Gap Credit Card Portfolio from Synchrony for $3.8 Billion
Synchrony and Barclays have agreed on a deal that will see Barclays issue Gap co-branded credit cards starting in 2022. Previously, Barclays had settled to begin issuing new cards with the Gap family of brands. Still, the new $3.8 billion purchase will see the U.K. bank also take over the existing credit card portfolio from Synchrony Bank.
Synchrony currently issues four co-branded retail cards featuring the Gap brands, including the Gap Visa® Card, Old Navy Visa® Card, Banana Republic Visa® Card, and the Athleta Visa® Card. These cards offer up to 5X points when shopping with Gap and Gap Inc. brands, special discounts, and more – for no annual fee.
According to press reports, the purchase of the Gap credit card portfolio is expected to close in the second quarter of 2020. Barclays says the purchase is being financed through existing resources and is estimated to reduce the bank’s core capital ratio by around 20 basis points.
“This new partnership brings together long-term leaders and innovators in retail, banking, and payments,” said Gap in a press release in April. “Through these partnerships, Gap Inc.’s iconic brands will continue to offer a suite of industry-leading credit card products, anchored in a digital and physical shopping experience, as part of a reimagined rewards program.”
Barclays Seeking to Expand U.S. Market Share
Barclays has been increasing its presence in the U.S. credit card market, recently extending its relationship with major airline JetBlue. The bank has also inked partnerships with AARP, Wyndham, and Emirates in the past year, further extending its reach. Barclays has also soft-launched a proprietary credit card – the Barclays View™ Mastercard® – to gain market share and close the gap with rivals like Chase and Citi.
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