Capital One and General Motors are extending their co-branded card partnership with the introduction of a new GM MasterCard from Capital One.
General Motors is using the new card to draw attention to an aggressive release schedule of 27 new or updated vehicles through next year.
"The key part of this is allowing consumers to put a new car in their driveway," said Chuck Thomson, general manager of retail sales and marketing for General Motors during a conference call on Oct. 16. "You can get a new car faster for less money."
The automaker and issuer developed the card based on input from consumers on existing rewards programs and how those programs could be improved.
"We found that consumers want a straightforward way to earn rewards that don't have limits and don't expire," said Bill Cilluffo, executive vice president of card partnerships at Capital One, during a conference call.
The new card provides 5% in rewards on a cardholder's first $5,000 worth of net purchases annually, and 2% on all other purchases. The rewards can be redeemed toward the purchase of a new Chevrolet, Buick, GMC or Cadillac vehicle. There is no timeframe for redemption, no annual fee and no foreign transaction fees.
The card comes in variants for the four major GM brands, though cardholders can redeem cash rewards toward purchase of any General Motors car.
The new card does not replace existing Capital One and General Motors products, such consumer and employee discount cards. Cardholders for those programs could adopt the new card, though employee discount cardholders cannot combine the two cards.
"Anybody with an existing [GM-branded Capital One card] can keep their own card, or if they want to switch to the new card they will have that option," Thomson said.
General Motors is also expanding its payments capabilities in other areasits OnStar unit recently debuted a contactless payments option.
Another automaker, Mercedes Benz, also recently expanded its payments services by offering a mobile payment option that's accessible from inside the user's car.