GM launches new credit card with Goldman Sachs

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FILE PHOTO: General Motors logo on top of company headquarters

NEW YORK (Reuters) – General Motors Co on Monday launched a credit card with Goldman Sachs Group Inc and revamped its rewards program to allow customers to earn more points to use to buy or lease Buicks, Cadillacs and other cars GM, 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 Wall Street Bank’s goals of being a primary lender.

Goldman bought GM’s credit card wallet in what would have been a $ 2.5 billion transaction in 2020. It gains approximately 3 million existing GM credit card holders, whose accounts have been converted to Goldman of Capital One Financial Corp this week, and all new applicants, who can apply using the Marcus by Goldman Sachs app.

Goldman launched Marcus in 2016 to diversify its revenue and funding sources by offering traditional banking products to consumers like savings accounts and, since 2019, a credit card with Apple Inc. Holders of this card had a balance. arrears 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.

(Reporting by Elizabeth Dilts Marshall in New York, editing by Matthew Lewis)

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