General Motors on Monday started a credit card with Goldman Sachs and revamped its rewards program to allow customers to earn more points to put toward purchasing or leasing Buicks, Cadillacs and other cars of General Motors, the automaker and the bank said in a joint statement.
Issued by Mastercard Inc through Goldman Sachs, the My GM Rewards card is the second credit card Goldman is offering through its Marcus consumer bank app and it further advances the Wall Street bank’s aims to be a major street lender.
Goldman purchased the GM credit card portfolio in what was reported to be a $2.5 billion deal in 2020. It gains roughly 3 million current GM credit cardholders, whose accounts were converted to Goldman from Capital One Financial this week, and all new applicants, who can apply through the Marcus by Goldman Sachs app.
Goldman introduced Marcus in 2016 to diversify its earnings and funding sources by providing traditional consumer banking products like savings accounts and, since 2019, a credit card with Apple Inc. Holders of that card had $6 billion in outstanding balances as of September 30.
GM hopes its rewards program – an industry-first when it was introduced in 2018 – will drive more consumers to redeem those points for new and used car purchases, parts, accessories, or OnStar services.
