Barclaycard acquires $1.3 billion card portfolio
Sallie Mae and Barclaycard US sign long-term partnership agreement
Current cardholders will continue to receive rewards that help them achieve their financial goals for education
NEWARK, DEL. (Feb. 28, 2012) -- Barclaycard US, the payments business of Barclays in the United States, and Sallie Mae, the nation's No. 1 financial services company specializing in education, have signed a new co-branded credit card agreement under which Barclaycard will issue both Sallie Mae and Upromise branded credit cards later this year.
In conjunction with this plan, Barclaycard has acquired the $1.3 billion Upromise by Sallie Mae credit card portfolio from FIA Card Services, N.A. Upromise cardholders will continue to earn cash back for college and Sallie Mae cardholders will continue to receive rewards that help them achieve their financial goals.
"We've selected Barclaycard to help us reach even more consumers with the tools to make the investment in higher education more affordable," said Joe DePaulo, executive vice president, Sallie Mae. "Our cardholders will continue to receive meaningful rewards to help them save and pay for college."
Sallie Mae offers a variety of financial products to help its 25 million customers save, plan and pay for college. Through the new relationship, Sallie Mae and Upromise branded cards will be offered to existing and prospective customers through a variety of channels.
"Our new partnership with Sallie Mae represents a great way to provide much appreciated help to families who are saving for college and other education expenses," said Surinder Singh, general manager-US Cards, Barclaycard US. "We look forward to growing this valuable program working closely with Sallie Mae."
By using the Upromise card, members can accelerate college savings through rewards of 1 percent on everyday purchases, an additional 2 percent for shopping at Upromise.com and extra rewards in select merchant categories.
Upromise by Sallie Mae is free to join and members have earned more than $660 million in cash for college since 2001. Money earned from everyday spending is accumulated in a Upromise account and can be invested in a tax-deferred 529 college savings plan, deposited into a Sallie Mae High-Yield Savings Account, used to help pay down an eligible Sallie Mae student loan, or sent to the member in the form of a check. In 2011 alone, members added nearly $24 million into Upromise Investments-administered 529 plans, deposited $2.5 million in FDIC insured Sallie Mae High-Yield Savings Accounts offered through Sallie Mae Bank and transferred $5 million to pay down Sallie Mae student loans.
Information about the new Sallie Mae and Upromise card products will be announced shortly before re-launch, expected in mid-2012.
About Sallie Mae
Sallie Mae (NASDAQ: SLM) is the nation's No. 1 financial services company specializing in education. Whether college is a long way off or just around the corner, Sallie Mae turns education dreams into reality for its 25 million customers. With products and services that include college savings programs, scholarship search tools, education loans, tuition insurance, and online banking, Sallie Mae offers solutions that help families save, plan, and pay for college. Sallie Mae also provides financial services to hundreds of college campuses as well as to federal and state governments. Learn more at SallieMae.com. Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.
About Barclaycard US
Headquartered in Wilmington, Del., Barclaycard US creates customized, co-branded credit card programs for some of the country's most successful travel, entertainment, retail, affinity and financial institutions. The company employs 1,300 associates. For more information please visit www.barclaycardus.com.
Barclaycard, part of Barclays Retail and Business Banking division, is a leading global payment business that helps consumers, retailers and businesses to make and accept payments flexibly, and to access short-term credit when needed.
The company is one of the pioneers of new forms of payments, and is at the forefront of developing viable contactless and mobile payment options for today and cutting edge forms of payment for the future. It also issues credit and charge cards to corporate customers and the British Government. Barclaycard partners with a wide range of organizations across the globe to offer their customers or members payment options and credit.
Barclaycard operates in the United States, Europe, Africa and the Middle and Far East. For further information about Barclays, please visit www.barclays.com.