Walmart’s majority-owned fintech startup, OnePay, announced on Monday that it will launch two new credit cards this fall, in partnership with Synchrony Bank.
Synchrony, a major player in retail credit, will handle both the issuance and underwriting of the cards.
The new offerings are designed specifically for Walmart customers, as part of the retailer’s ongoing effort to expand its footprint in financial services through OnePay.
This development follows Walmart’s move to sever ties with Capital One, which had served as its exclusive credit card partner since 2018.
Walmart’s fintech venture OnePay, launched in 2021 with backing from Ribbit Capital, will oversee the customer experience for its upcoming credit card program through its mobile app.
“Our goal with this credit card program is to deliver an experience for consumers that’s transparent, rewarding, and easy to use,” OnePay CEO Omer Ismail said in the Monday release.
“We’re excited to be partnering with Synchrony to launch a program at Walmart that checks each of those boxes and will help serve millions of people,” Ismail said.
In 2023, Walmart filed a lawsuit to exit the agreement early, while Capital One claimed the retailer was trying to shift its credit card operations to OnePay.
When Walmart ended its partnership with Capital One, its credit card program served about 10 million customers with nearly $8.5 billion in outstanding loans, according to Fitch Ratings.
The new deal with Synchrony reflects Walmart and OnePay’s strategy to rapidly expand in financial services by partnering with experienced institutions rather than developing the capabilities entirely on their own.
OnePay is introducing two credit card options: a general-purpose card that can be used anywhere Mastercard is accepted, and a store card limited to purchases at Walmart.
According to a source familiar with the program, customers who don’t meet the credit criteria for the general-purpose card will be offered the Walmart-only store card as an alternative.
OnePay has not yet revealed the rewards or incentives that will come with the new credit cards. The partnership with Synchrony was first reported by Bloomberg.
