Walmart introduces cash-back, mobile-friendly credit cards

Press enter to search
Close search
Open Menu

Walmart introduces cash-back, mobile-friendly credit cards

By Dan Berthiaume - 09/18/2019
Walmart is upgrading its branded credit card offering with an eye toward the digital age.

Partnering with Capital One, Walmart is launching the Capital One Walmart Rewards Credit Card program with two new credit cards. The program’s co-branded card, the Capital One Walmart Rewards Mastercard, and a private-label card exclusively for Walmart purchases, the Walmart Rewards Card, will be available beginning Sept. 24.

The co-branded Mastercard offers a variety of digital-first features, including online and mobile application options. Applicants can text to apply and complete their application from their personal mobile devices. Once applicants are approved and their identity is verified, they will receive immediate access to their card for Walmart purchases.

If new cardholders sign up or have an account for the Walmart Pay digital payment service, they can load their card into the Walmart app for immediate use in-store and online, without waiting for the physical card to arrive. Cardholders will also have access to Capital One digital tools, such as real-time purchase notifications, security alerts, 0% fraud liability if the card is lost or stolen, and the ability to lock and unlock their card directly through the Capital One mobile app.

Other card benefits include 5% back on purchases at Walmart.com, including grocery pickup and delivery, 5% back on in-store purchases with Walmart Pay for the first 12 months after approval, 2% back on Walmart purchases in stores outside of the introductory offer, 2% back on restaurants and travel, 1% back everywhere else, and no annual fee and no foreign transaction fees. Cardholders will be able to redeem rewards at any time for travel or gift cards during online checkout at Walmart.com.

Walmart and Capital One are also offering the Walmart Rewards Card. Cardholders will earn the same 5% back on purchases made via Walmart’s e-commerce site and mobile app, the 5% introductory offer for using Walmart Pay in stores for the first 12 months after approval, and an unlimited 2% back on Walmart purchases in stores outside of the introductory offer, and 2% back at Walmart fuel stations.

Current Walmart cardholders will be converted to the Capital One Walmart Rewards Mastercard or the Walmart Rewards Card and will start earning these new rewards starting Oct. 11, with updated cards arriving in the mail beginning in November. Current cardholders will also be eligible to earn 5% back when they use their card with Walmart Pay in-store through Oct. 14, 2020. The companies say they will continue to add new products and capabilities to the program over time.

“As our company has evolved to serve customers shopping in stores, online, and on the Walmart apps, we also recognized the need to fully digitally enable the cardholder experience; that’s why we’ve worked with Capital One to make it possible for cardholders to manage essentially every interaction with the program right from the palm of their hands,” said Daniel Eckert, senior VP, Walmart services and digital acceleration.

Walmart’s “digital first” credit card program bears some similarities to the recently launched no-fee Apple Card. The Apple Card is built into the Apple Wallet app on iPhone, connecting it to the Apple Pay digital payment service and providing users the ability to manage their card on their phone.

It also features similar cashback rewards, with higher percentages for purchases made via Apple Pay digital payment or for Apple products and services. However, Apple Card also offers advanced privacy and security features, as well as machine learning-based account management, without an equivalent in the current Walmart Rewards program.