Goldman Sachs and Barclays are among the bidders for automaker GM’s credit card business, The Wall Street Journal reported based on anonymous sources, pitching GM on the idea of turning cars into mobile e-commerce stations.


Key facts about GM’s credit card business

  • The automaker’s credit-card business has $3 billion in outstanding balances on its books, according to The Wall Street Journal, and it has one year remaining on its contract with its current card partner, Capital One.
  • In their pitches to GM, Goldman and Barclays have pushed the idea of cars as e-commerce portals, an effort that the automaker itself has embraced, the WSJ reported.
  • In 2018, GM was the first major automaker to allow drivers to order food and perform other transactions from dashboard touch screens, signing up retail partners including Dunkin’ Brands Group and Shell.
  • Goldman, which launched a consumer finance division dubbed Marcus four years ago,  introduced its first co-branded credit card with Apple last year — without a retail branch network, it relies on such partnerships to generate consumer business.
  • The vision to facilitate purchases from the driver’s seat is part of a push to expand e-commerce through everyday devices that’s supported by by card networks such as Visa Inc. and Mastercard Inc., which make money regardless of where transactions take place.

What to watch for on tech giants

In the long run Facebook, Google and Amazon could go on to create more ambitious Chinese-style mega-apps, bringing together payments, retail and social media, in the mold of Alibaba and Tencent.