Walmart launches new credit card.
Walmart’s own fintech company, OnePay, which it launched in 2021, made an announcement on Monday, June 9. The fintech startup announced that it will soon offer two new credit cards for Walmart shoppers. And in order to make this happen, OnePay will be teaming up with Synchrony, a major player in retail cards.
The partnership between OnePay and Synchrony was first announced in a Bloomberg report. Synchrony will be in charge of giving out the credit cards, which are expected to launch in the fall. The company will also determine which customers qualify for a card.
Synchrony is not the only company OnePay will be working with. It will also work alongside another company called Ribbit Capital, which will take care of how customers use the credit cards through its app on customers’ phones.
Capital One Partnership
Back in 2018, Walmart had a deal with Capital One. This was the company that was giving out Walmart credit cards. However, in 2023, Walmart decided to end the deal early. The retail store chain even took Capital One to court to terminate the deal earlier than scheduled. At that time, the bank argued that Walmart simply wanted to terminate the deal earlier than agreed upon, so that it could move its transactions to OnePay.
According to Fitch Ratings, at the time the deal ended, about 10 million people were using Walmart credit cards. These customers had borrowed around $8.5 billion in total using those cards. Now, Walmart and its financial company, OnePay, are trying to quickly grow in financial services and the banking world. To achieve this, they are working with major companies that are well-experienced.
For example, in March, OnePay announced that it was working with the Swedish company Klarna. The goal of the partnership was to offer “buy now, pay later” loans for Walmart shoppers. OnePay made this announcement, even when it had already tested its own installment loan program.
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Walmart Launches Two New Credit Cards
OnePay is trying to become a company that offers all the money tools people need. This perk is especially for those who do not get much help from regular banks. They have been adding new services to what they already offer, and now the bank is offering features like debit cards and savings accounts that earn more money over time. The fintech company also offers a digital wallet that customers can use to send money to friends or pay for things online.
OnePay is launching two new credit card options. One option is a regular credit card that customers can use anywhere that accepts MasterCard. The other option is a store card that customers can use only at Walmart.
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If a customer does not qualify for the regular card, maybe because they have a low credit score or no credit history, they will still be able to get the Walmart-only card.
Although there might be rewards for making purchases with these cards, OnePay has not made any announcements concerning that yet. The fintech company’s CEO, Omer Ismail, mentioned that they want the cards to be easy to use, honest about fees and terms, and rewarding for customers. Ismail further stated that the company is excited to work with Walmart and Synchrony to help millions of people get access to better financial tools.