Dive Brief:
- Next summer, Barclays’ U.S. consumer bank will become the exclusive issuer of two General Motors credit cards with the network Mastercard in the U.S., according to a joint press release posted Monday. It will issue a GM loyalty card that offers rewards and a business card.
- Barclays, which is a British bank with a U.S. presence, will replace Goldman Sachs as the automaker's current card issuer, according to a report Monday from the news outlet MarketWatch.
- "We look forward to helping GM create an industry-leading credit card product," Barclays US Consumer Bank CEO Denny Nealon said in the news release.
Dive Insight:
The partnership pairs the London-based Barclays and Detroit-based GM. The latter sold 2.6 million vehicles in the U.S. in 2023, making it the biggest-selling automaker in the U.S. last year, according to the trade publication Automotive Logistics, which cited figures from Cox Automotive.
Goldman said in November 2023 that it would eventually stop issuing GM credit cards, Reuters reported last year. The two cards that Barclays will now issue are GM’s only two credit cards, a GM spokesperson said.
The release included few details about the collaboration. It did not include the value of the partnership or how revenue will be split. A spokesperson for Barclays did not respond to a request for comment. The GM spokesperson, James Cain, declined to comment.
Cain said more announcements are coming in 2025. “The first step is to transition the business we have today to Barclays, and then grow it,” he said.
A spokesperson for Goldman Sachs declined to comment.
GM will offer cardholders certain car-buying perks. The rewards, for example, can be redeemed on Chevrolet, Cadillac, Buick and other GMC vehicles. The automaker's electric vehicles are included in those available for redeeming card rewards, the release said.
Those rewards can also be used to accessorize and service the cardholder’s vehicle, according to the release.
"We're bringing thousands of new customers to our family of brands every year, especially as we grow in electric vehicles, and we look forward to creating new opportunities to reward our most loyal customers," GM Chief Financial Officer Paul Jacobson said in the release.
