Barclays is buying a $ 3.8 billion portfolio of Gap retail credit cards from Synchrony Financial, underlining the British bank’s ambitions to beef up its US consumer business.
The deal, announced Friday, comes four months after the British banking giant had struck a deal with Gap to become the retailer’s credit card issuer starting in May 2022. Synchrony currently issues co-branded and private-label credit cards for Gap and its affiliates, but the two are parting ways after talks to renew their partnership faltered.
Barclays CEO Jes Staley has prioritized investing in the bank’s US consumer business.
Gap’s other brands include Old Navy, Banana Republic and Athleta, and the total portfolio had about $ 3.8 billion in average receivables as of June 2021. Barclays says it expects to complete the portfolio acquisition in the second quarter of next year.