Wall Street giant Goldman Sachs will further expand its venture into the credit card industry, announcing Friday that it signed a deal with General Motors (GM) to be the issuing bank for the automaker’s credit card programs.
Mastercard will remain the network for the credit cards, according to the joint press release from the firms. Goldman Sachs plans to take over the card program in September, and current cardholders will see no changes to their accounts before then, the press release said.
“We chose to partner with Goldman Sachs because of their proven ability to innovate,” Chuck Thomson, general manager of retail sales and marketing support for GM, said in a statement.
“We are excited to partner with GM to reimagine the credit card experience for GM customers,” Omer Ismail, Goldman Sachs global head of consumer business, said in a statement. “Our focus remains on delivering a simple and transparent experience that helps customers manage their spending and borrowing needs better.”
The companies provided no further details on the deal.
Goldman Sachs first ventured into the credit card space in August 2019, when it partnered with Apple to be the issuing bank for the Apple Card, which is also a Mastercard network card. The additional card business will deepen the investment bank’s move into consumer finance, which now includes personal loans, savings accounts, and certificates of deposit offered through Marcus, an online bank. Marcus is expected to offer checking accounts later in 2021. Meanwhile, GM has had a credit card for nearly 30 years now, launching its first consumer card in 1992.