Goldman Negotiates GM Credit Card Transfer with Barclays

by Cho Seulkina

Published 30 Apr.2024 14:04(KST)

Goldman Sachs is reportedly in negotiations to transfer its credit card partnership with General Motors (GM) to Barclays, according to the Wall Street Journal (WSJ) on the 29th (local time).

[Image source=Reuters Yonhap News]

According to sources, Barclays is currently the leading candidate and is expected to finalize a contract with GM by this summer. US Bancorp, Bread Financial, and others had also shown interest but recently withdrew. Previously, Goldman Sachs decided to exit the credit card business with GM.

The WSJ described this as "part of Goldman Sachs' efforts to withdraw from the consumer finance sector." Goldman Sachs' platform solutions division, which includes GM credit cards and other consumer loans, recorded a pre-tax loss of approximately $6 billion from early 2020 through the first quarter of this year.

Barclays has been pursuing diversification of its U.S. credit card business through partnerships with airlines and others. The plan is to expand its U.S. credit card business by adding joint partnership brands. Previously, Barclays had bid for the credit card partnership with GM in 2020 but was outbid by Goldman Sachs.