Reuters
2 min read
In This Article:
(Reuters) -Walmart's majority-owned fintech company OnePay has teamed up with Synchrony Financial to issue the retail giant's credit card, the consumer financial services company said on Monday, marking a return of a collaboration that ended in 2018.
The partnership will see Synchrony issue two cards: a Walmart branded credit card that can only be used for purchases at Walmart and a general purpose credit card that can be used anywhere that Mastercard is accepted.
The cards, expected to be launched this fall, will be managed through Walmart's OnePay app, which will handle user interactions, while Synchrony will manage the balance sheets, card issuance and loan servicing, the companies said.
The move is part of Walmart's efforts to expand its payment options in an increasingly digital payments environment and reduce fees paid to networks and card operators that its customers use to shop across its 4,600 U.S. stores and website.
The cards will target Walmart's huge U.S. customer base, 90% of which lives within 10 miles of a Walmart store, and its 1.6 million U.S. employees, a person familiar with the deal said.
OnePay has also not disclosed details of rewards associated with the Synchrony cards, but will reveal those details closer to their fall release, the person added.
OnePay is Walmart's financial services company, launched in 2021 with Ribbit Capital. While Walmart holds a majority stake, OnePay operates independently.
Through this platform, Walmart has expanded its payment services, offering high-yield savings accounts, a digital wallet, and peer-to-peer financial tools. For Walmart associates, OnePay provides a debit card and recently partnered with Klarna to offer installment loans for purchases at Walmart.
Monday's partnership marks Walmart's return to Synchrony, which issued Walmart's store-branded credit cards until 2018, but lost the contract to Capital One the following year.
Walmart, however, ended its credit card partnership with Capital One in 2024, citing delays in updating transactions to cardholders' accounts and slow replacement of lost cards.
(Reporting by Prakhar Srivastava in Bengaluru, additional reporting by Siddharth Cavale; Editing by Leroy Leo; editing by David Evans)
