The Goldman Sachs Group has become the issuing bank for credit card programmes of General Motors (GM), an American vehicle manufacturer that also sells financial services.
The two companies have signed a multi-year partnership agreement for the issuance of co-branded rewards-based credit cards, in collaboration with Mastercard.
Goldman Sachs will become the issuing bank for GM’s credit card business starting September this year. The card accounts of existing GM cardmembers will not be affected before this date.
The new card offerings will continue to be rolled out over the Mastercard network.
The latest development comes after Goldman Sachs was in the news in October 2020 for planning to acquire GM’s credit card business for nearly $2.5bn.
The bank reportedly outbid Barclays to scoop up the deal. Financial terms were not divulged.
After launching a card with tech giant Apple in 2019, the latest deal with GM is said to be the bank’s second major credit card partnership.
Goldman Sachs global head of consumer business Omer Ismail said: “We are excited to partner with GM to reimagine the credit card experience for GM customers.
“Our focus remains on delivering a simple and transparent experience that helps customers manage their spending and borrowing needs better.”
Back in 1992, GM launched its first co-branded rewards consumer card.
Since then, millions of customers have redeemed the rewards earned on these cards for the purchase of the new Chevrolet, Buick, GMC, and Cadillac vehicles.
GM general manager of retail sales and marketing support Chuck Thomson said: “We chose to partner with Goldman Sachs because of their proven ability to innovate.
“The foundation of this partnership, including our continued work with Mastercard, is our shared values – to put the customer at the centre and deliver exceptional experiences.”
Mastercard North America president Linda Kirkpatrick said: “We are proud to renew our business with GM and launch this new programme with Goldman Sachs.
“Together, we will drive innovation in loyalty, digital and next-generation payment initiatives.”