(Reuters) -General Motors and Barclays said on Monday they have signed a long-term credit card partnership agreement to let customers earn and redeem reward points on new Buicks, Cadillacs and other GM cars, including electric vehicles.
Company-branded credit cards can be a major win for banks, as they capitalize on customer loyalty to the partner brand along with offers of attractive perks such as cashback and rewards.
The partnership will help expand Barclays' credit card footprint in the U.S. The bank also has card relationships with other prominent brands such as American Airlines (NASDAQ:AAL) and Gap.
As part of the agreement, Barclays will acquire the card program's receivables from the current issuer next year.
Reuters had reported last month Goldman Sachs was nearing a deal to transfer its GM credit card business to Barclays.
The GM credit card program will continue to be issued exclusively under the Mastercard (NYSE:MA) brand.
Barclays will be the exclusive issuer of the GM Rewards Mastercard and the GM Business Mastercard in the United States starting next summer.