Goldman will be the issuing bank for GM's credit card programs starting in September. Mastercard will remain the network of choice, according to a joint release issued Friday.
|GM||GENERAL MOTORS CO.||52.52||+1.40||+2.74%|
|GS||THE GOLDMAN SACHS GROUP, INC.||329.76||+11.53||+3.62%|
The announcement comes just a few months after Goldman Sachs Group purchased GM's credit card business for about $2.5 billion, outbidding rival Barclays Plc, the Wall Street Journal reported, citing people familiar with the matter.
The goal of Goldman's latest venture is to "reimagine the credit card experience for GM customers," Omer Ismail, the bank's global head of consumer business, said.
“Our focus remains on delivering a simple and transparent experience that helps customers manage their spending and borrowing needs better," Ismail said.
GM has been developing co-branded rewards card programs since launching its first consumer card in 1992.
Since then, customers have been able to redeem earnings toward Chevrolet, Buick, GMC and Cadillac vehicle purchases.
Goldman is also working with Apple on a joint credit card, Apple Card, which also uses the Mastercard network.