GM, Goldman Sachs, Mastercard join forces on credit card venture

GM customers can redeem earnings toward Chevrolet, Buick, GMC, Cadillac vehicle purchases

General Motors, Goldman Sachs and Mastercard are joining forces to create co-branded, rewards-based credit cards this year.

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.

TickerSecurityLastChangeChange %
GMGENERAL MOTORS CO.52.52+1.40+2.74%
MAMASTERCARD, INC.362.90+9.05+2.56%
GSTHE GOLDMAN SACHS GROUP, INC.329.76+11.53+3.62%

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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.

(Angus Mordant/Bloomberg via Getty Images)

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“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.