Key Points
- GM and Barclays have signed a long-term credit card partnership that allows customers to earn and redeem reward points on GM vehicles.
- Barclays will acquire the GM credit card program’s receivables from Goldman Sachs next year.
- Starting next summer, Barclays will become the exclusive issuer of GM Rewards Mastercard and GM Business Mastercard.
- The partnership strengthens Barclays’ U.S. credit card footprint and supports GM’s customer loyalty efforts.
General Motors (GM) and Barclays have entered into a long-term credit card partnership to offer GM-branded credit cards that allow customers to earn and redeem reward points on GM vehicles, including Buicks, Cadillacs, and electric vehicles (EVs). The agreement, announced on Monday, will boost customer loyalty to the automaker while expanding Barclays’ presence in the U.S. credit card market.
Branded credit cards have become a valuable tool for banks as they capitalize on customer loyalty to partner brands, offering incentives such as cashback and rewards. Through this collaboration, GM customers will benefit from earning points that can be redeemed for purchasing new vehicles or other automotive-related expenses.
Barclays is set to acquire the receivables from GM’s current card issuer next year, marking a significant step for the British bank as it aims to increase its footprint in the U.S. credit card industry. Barclays already maintains strong relationships with several high-profile brands, including American Airlines and Gap, and the addition of GM’s credit card program strengthens its position in the market.
The GM credit card program will continue to be issued exclusively under the Mastercard brand, ensuring that cardholders can access Mastercard’s global network. Starting next summer, Barclays will be the exclusive issuer of the GM Rewards Mastercard and the GM Business Mastercard.
This partnership aligns with General Motors’ broader strategy to enhance customer engagement, particularly as the automaker ramps its electric vehicle lineup. Offering attractive rewards and cashback opportunities tied to vehicle purchases is expected to encourage GM customers to continue buying from the brand, whether for traditional models or its growing range of EVs.
Goldman had initially acquired the GM card program in 2020 but has recently been scaling back its consumer finance efforts, which paved the way for Barclays to take over. Overall, the agreement is expected to benefit both companies, enabling GM to deepen customer loyalty and Barclays to expand its credit card portfolio in a competitive U.S. market.
