A new company will be managing Walmart’s store credit cards.
The discount giant has entered into a long-term agreement with Capital One. Starting August 1, 2019, the company will be the exclusive issuer of Walmart’s private label and co-branded credit card program in the United States.
The new partners plan to combine Walmart’s size, scale and leadership in omnichannel retailing with Capital One’s technology background in the retail financial services market. By merging their strengths, the duo plans to offer digitally enabled credit card products, according to the retailer.
The move ends a nearly 20-year partnership with Walmart’s existing issuer, Synchrony Financial. Synchrony is currently evaluating whether to sell the $10 billion in balances or retain the portfolio and convert qualifying customers to general purpose credit cards, according to Bloomberg.
The switch also marks the biggest shake-up in retail credit-card partnerships since Costco Wholesale Corp. dumped American Express Co. and moved to Citigroup Inc. in 2016, according to MarketWatch.