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The Wall Street Journal

Aug. 12, 2020, 3:05 p.m. EDT

Goldman in the running for GM’s credit card business

Barclays and Goldman among bidders for auto maker’s credit-card business, which has about $3 billion in outstanding balances

By Liz Hoffman and AnnaMaria Andriotis


Bloomberg
Analysts at KBW and Oppenheimer have "outperform" ratings on Goldman Sachs.

Goldman Sachs Group Inc. is seeking to acquire General Motors Co.’s credit-card business, doubling down on consumer banking and betting on a future where people pay for gas, takeout and groceries from the driver’s seat.

The Wall Street firm is among a small number of bidders for the auto maker’s credit-card business, which has about $3 billion in outstanding balances, according to people familiar with the matter.

There is no guarantee that GM (NYS:GM)   will ultimately choose to replace its current card issuer, Capital One Financial Corp. (NYS:COF)  , or that Goldman (NYS:GS)   will win. Barclays PLC (SWX:CH:BARC)   is also in the running, some of the people said, and a decision is expected in the next few weeks.

Goldman launched its first credit card last year, partnering with Apple Inc. (NAS:AAPL)   and positioning it as a tech-enabled and secure alternative to an outdated product rife with fraud. The Apple card is digitally issued onto users’ iPhones in minutes and uses location data to categorize and track spending.

An expanded version of this report appears on WSJ.com.

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