Bloomberg is reporting that Goldman Sachs and Wells Fargo “are on the brink of piling into credit-card lending”. As readers of this blog know, Wells Fargo already issues credit cards but they have discontinued applications for the Propel line of cards ahead of a product refresh on June 23rd (the Propel World is still available via phone & in branch applications).
The real news is Goldman Sachs entering the credit card market, they already have a co-branded card with American Express but it looks like their aim is to compete directly with their online only arm ‘Marcus’ (some readers will be familiar with this already as they offer a 2.1% APY 12 month CD). Earlier this year Goldman Sachs acquired Final (credit card that offer virtual card numbers and other security features).
For consumers competition such as this can only be a good thing, Goldman will need to aggressively market any new cards if they plan on getting any market share and this will also hopefully drive incumbent card issuers to offer more rewards & benefits in an attempt to retain their own market share.
Hat tip to reader @vsyo
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