Goldman Sachs Considers Buying CoreCard, A Purchase Payments Company
As part of its efforts to improve its credit card offerings, Goldman Sachs is exploring buying payments technology companies Deserve and Cardless and CoreCard. The former is a credit card platform, and the latter is a payments company.
According to sources, Goldman’s executives held talks with Deserve in 2021 and extended the same offer last month. However, it appears that talks between the two sides are on hold.
A spokesperson for Goldman reiterated that since the company already had the necessary platforms to help its card partners, they were not looking to invest in that arena. In 2021, Goldman also considered acquiring the credit card program from Jet Blue.
It should be noted that Goldman and Deserve are already in collaboration with Goldman having invested $50 million in 2019 and $250 million in 2022.
Earlier this year, in April, Deserve announced a unique platform for B2B companies and banks to introduce corporate credit cards for customers. The platform also allows instant issuance and digital wallet provisioning.
In October 2022, Goldman Sachs announced the creation of a new transaction banking division, as well as launching credit cards with Apple and GM. This was the bank’s fourth restructuring in three years and one of the largest in its 153-year history.
Aside from transaction banking, Goldman reportedly plans to streamline into two other divisions: asset and wealth management and investment banking and trading.
In its earnings report last month, Goldman said that its credit card loans were $14 billion, up from $12 billion in the previous quarter and $6 billion in 2021.
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