WSJ is reporting that GAP will change credit card issuers for it’s private label and co-branded credit cards for brands such as Athleta, Banana Republic and Old Navy. The existing issuer is Synchrony and the new card issuer will be Barclays. Synchrony has previously held this relationship for approximately 22 years.
The changeover is expected to happen sometime around April 2022 when the existing contract ends and Synchrony is expected to earn $1 billion from the sale. As part of the sale Barclays has purchased the backbook meaning that existing cardholders will be brought over to Barclays in the sale.
Unfortunately it’s probably bad news for all of the spending offers we regularly see on these cards, as previously 80% of the card programs cost was incurred by GAP.
Hat tip to reader John L
