GM launches new credit card with Goldman Sachs

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NEW YORK, Jan. 10 (Reuters) – General Motors Co (GM.N) on Monday launched a credit card with Goldman Sachs Group Inc (GS.N) and revamped its rewards program to allow customers to earn more points to invest in buying or leasing. Buick, Cadillac and other GM cars, the automaker and the bank said in a joint statement.

Issued by Mastercard Inc (MS.N) 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 Wall Street Bank’s goals of being a primary lender.

Goldman bought the GM credit card wallet under a deal that would have been worth $ 2.5 billion in 2020. It gains about 3 million existing GM credit card holders, whose accounts have been converted in Goldman by Capital One Financial Corp (COF.N) this week, and all new applicants, who can apply using the Marcus by Goldman Sachs app.

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Goldman launched Marcus in 2016 to diversify its income and funding sources by offering traditional banking products to consumers like savings accounts and, since 2019, a credit card with Apple Inc (AAPL.O). Holders of this card had an outstanding balance of $ 6 billion as of September 30.

The card gives customers 7 points for every $ 1 spent at GM and 4 points for every $ 1 spent elsewhere, with an annual interest rate of between 14.99% and 24.99%, after an initial promotional period.

GM hopes its rewards program – an industry first when it launched in 2018 – will inspire more customers to redeem those points for new and used car purchases, or OnStar parts, accessories or services.

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Reporting by Elizabeth Dilts Marshall in New York Editing by Matthew Lewis

Our standards: Thomson Reuters Trust Principles.

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