Goldman Sachs May Enter Credit Card Industry
Goldman Sachs may soon join the credit card industry. This week, the banking and investment firm acquired Final, a credit card startup.
Aaron Frank, the founder of Final, announced in December the closing all Final Visa credit card accounts but did not offer an explanation as to why. Final, which issued virtual cards, advertised itself as a more secure payment option, as it allowed cardholders to use a unique credit card number for every merchant and the ability to deactivate card numbers. Since card numbers were constantly changing, consumers did not need to worry about their permanent card details being stolen in a breach.
As a part of the deal, engineers and production managers who created the first Final card will join the Goldman Sachs team.
The acquisition of Final is just one part of Goldman Sachs’ efforts to expand into the consumer credit industry. In October 2016, the company launched Marcus, an online personal loan and savings account service. Goldman issued over $2 billion in personal loans through this service in its first year, according to Fast Company.
It is not yet clear whether Goldman Sachs plans to release a traditional credit card or create a virtual card, such as the Final Visa.