Barclays Aims for USA Branding in Bid for Goldman Sachs’ GM Mastercard

Published on May 6, 2024

Barclays is seen beating out US Bancorp and Bread Financial for another Goldman Sachs retail business hitting the block, its General Motors Mastercard, according to insiders cited by The Wall Street Journal, in what could be a powerful branding move for the UK bank.

Why it matters: For Barclays, the 27th biggest bank in the U.S., a deal to take on $2 billion of outstanding balances could be a powerful move to get into the wallets of new customers.

Driving the news: The credit cards are issued by Mastercard through Goldman Sachs, allowing customers to earn points towards buying or leasing Buicks, Cadillacs and other GM cars. In 2020, Goldman Sachs originally outbid Barclays, paying a reported $2.5 billion to win the business from Capital One.

Be smart: In 2020, the 1 million GM cardholders spent around $8.5 billion annually. Meanwhile, Apple Card, which is one of the few retail businesses Goldman Sachs is keeping -- for the moment -- has blossomed to 12 million users. Begun in 2019, Apple's high-yield savings account offered by Goldman Sachs launched in 2023, topping $10 billion in deposits in just its first few months. The caveat there is based on a recent report in the WSJ that Apple has asked the bank to consider winding down their partnership in 2025.

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