Walmart is now offering credit cards through its own financial technology company after ending its partnership with Capital One.

Walmart’s New Credit Card Initiative

Walmart will introduce Capital One Walmart Credit Card signs on Tuesday, November 19, 2019, at its store in Mountain View, California.

On Monday, Walmart’s fintech venture, One Pay, announced plans to roll out credit cards in collaboration with banking partners for its customers, marking an interesting evolution for the retailer. OnePay is linked with Synchrony, a key player in the retail credit card sector, which will manage card issuance and underwriting decisions.

Established in 2021, OnePay was created through a partnership between Walmart and Ribbit Capital, focusing on enhancing the customer experience via a mobile app.

Since 2018, Walmart has exclusively relied on Capital One as its credit card provider. However, in 2023, the banks mutually agreed to end their partnership sooner than initially planned, triggered by allegations from Capital One that Walmart sought to dissolve the relationship, facilitating a transition to OnePay.

Before this change, the Walmart Card program generated approximately $8.5 billion in loans, serving 10 million customers, showcasing the scale of its impact.

This collaboration with OnePay underscores Walmart’s strategy to partner with established players in financial services as it seeks rapid expansion, rather than going solo.

Interestingly, earlier this year, OnePay also partnered with Swedish fintech company Klarna to offer pay-later loan options at different retail locations, following tests of its own installment loan system.

One-Stop Shop for Financial Services

OnePay’s vision aims to create a comprehensive solution for Americans who are unserved by conventional banking. It has developed a range of products, including debit cards, high-yield savings accounts, and digital wallets that incorporate peer-to-peer payment options.

There are two types of credit cards offered: a general credit card usable anywhere Mastercard is accepted and a store card limited to Walmart purchases. Reports suggest that customers with less favorable credit profiles will likely receive the store card option.

Currently, the rewards structure for these cards remains undisclosed, though past collaborations with Synchrony have been noted in various reports.

Omer Ismail, CEO of OnePay, expressed excitement about the initiative. He emphasized their commitment to a credit card experience that is transparent, user-friendly, and inclusive.