Goldman Sachs is taking over the General Motors portfolio of credit cards from Capital One. The acquisition follows months of competition between Goldman Sachs and British giant Barclays for the American car manufacturer’s portfolio of credit products.
GM Credit Cards
The Wall Street Journal reports that Goldman Sachs will buy the GM credit card portfolio from Capital One for around $2.5 billion. The portfolio currently consists of the following credit cards:
GM credit cards provide cardholders with the opportunity to earn cash back with every purchase. These rewards are then applicable to purchasing new or used General Motors vehicles, or towards parts and services through GM mechanics and dealerships.
Details of the Acquisition
According to the same WSJ report, the GM portfolio has approximately one million cardholders. Those customers spend roughly $8.5 billion per year – with about $2.5 billion in balances currently outstanding.
Goldman Sachs was facing intense competition for the card portfolio from Barclays, the U.K.-based banking giant. Barclays currently features an extensive lineup of co-branded credit cards, including travel cards with major airlines, hotels, and cruise lines. It also offers retail cards through merchants like Barnes & Noble.
Goldman Sachs Credit Cards
The purchase of the GM credit card lineup from Capital One is another step by Goldman Sachs into the consumer banking marketplace. The financial corporation helped launch the Apple Card with Apple last year – the first credit card offered by Goldman Sachs. The company also operates the popular Marcus by Goldman Sachs online high-yield savings account.
About Goldman Sachs
Goldman Sachs Group is a leading global investment firm. The company, with its headquarters in New York City, provides investment banking, securities, and investment management for corporations, financial institutions, governments, and private individuals.
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