Goldman In Talks To Take Over JetBlue’s Credit Card Program

In the newest potential move from Goldman Sachs Group Inc. to extend farther into consumer finance, the bank is in discussions with JetBlue Airways Corp. in regard to taking charge of the air carrier’s credit card program, The Wall Street Journal reported, citing unnamed sources.

Goldman Sachs is vying with JetBlue’s present credit card issuer, Barclays. That company is in talks to keep the arrangement, WSJ reported, citing unnamed sources, and the airline could opt to remain with Barclays. JetBlue’s deal with Barclays reportedly concludes in approximately three years.

Co-branded air carrier cards are some of the most rivalrous in the credit card space. Only so many U.S. air carriers exist, but hundreds of merchants could team with banks to provide credit cards.

However, the pandemic has heavily impacted credit card spending, especially on airline tickets and travel beyond airfare. A number of individuals who were concerned about borrowing more in an uncertain employment market made the change to debit cards. Even so, those that issue cards are wagering that pent-up demand will bring about a jump in travel when the COVID-19 health crisis is over.

Goldman Sachs started in the credit card business in 2019. Balances on the bank’s cards were $4.3 billion in December in contrast to J.P. Morgan Chase & Co.’s $144 billion in credit card balances in the fourth quarter of last year.

As previously reported, Goldman Sachs beat out Barclays to purchase the credit card business of General Motors (GM). The investment bank now has access to the more than one million cardholders who account for approximately $8.5 billion in spending annually, it was reported at the time.

In August, JetBlue and Goldman Sachs said they were collaborating to let travelers harness MarcusPay to travel now, pay later on the air carrier’s flights.