Group Inc. is seeking to acquire the credit-card business of
General Motors Co.
, 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 will ultimately choose to replace its current card issuer,
Capital One Financial Corp.
, or that Goldman will win.
PLC 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
and positioning it as a tech-enabled and secure alternative to an outdated product rife with fraud.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.
The bank agreed not to launch another co-branded card for about another year, according to people familiar with the matter, but has been open about its desire to add more merchants. It will have to unseat big banks that dominate the co-brand space, including
whose former head of card partnerships, Scott Young, Goldman hired in 2017 to pursue similar deals.
Capital One has issued the GM card since 2012 and still has about a year left on the contract.
In their pitches to GM, Goldman and Barclays have pushed the idea of cars as e-commerce portals, people familiar with the matter said, an effort that the auto maker itself has embraced. GM was the first major car company to allow drivers to order food, pay for gas and book hotel stays from dashboard touch screens, and it signed up merchants including
Dunkin’ Brands Group Inc.
It is part of a broader effort to wire everyday gadgets to the web to encourage consumer purchases and gather data. This technology has been slow to take hold—not everyone needs a refrigerator that says when the milk is running low—but it taps into a broader trend of consumer spending becoming more seamless and digital. The coronavirus pandemic could add to the appeal by increasing demand for e-commerce and contactless pickup.
The push is supported by card networks such as
which make money when cards are swiped, virtually or not. These companies are eager to expand shopping beyond store checkout counters and websites.