Goldman Sachs in talks to transfer GM credit card partnership to Barclays

Goldman Sachs shifts gears: Goldman Sachs is in discussions to hand over its partnership for General Motors' credit card programme to Barclays, according to news agency Reuters citing a Wall Street Journal report on Monday.

Barclays appears to be the frontrunner to take on the issuance of these credit cards, which currently carry approximately $2 billion in outstanding balances. Other potential contenders such as US Bancorp and Bread Financial were considered but eventually dropped out of the running.

If negotiations proceed smoothly, a deal could be finalised as early as this summer, the report suggests.

Both Goldman Sachs and General Motors declined to provide comment on the matter, while Barclays has yet to respond to enquiries.

Last November, Goldman Sachs announced its plan to discontinue its co-branded credit cards partnership with GM. The programme, facilitated by Mastercard through Goldman Sachs, was initiated in 2022 to enable customers to accrue additional points for the purchase or lease of Buicks, Cadillacs, and other vehicles under the GM umbrella.

(With Reuters Inputs)