Capital One Financial and retail giant Walmart have signed a new, long-term credit card programme agreement for the US market.
Under the agreement, Capital One will exclusively issue Walmart’s private label and co-branded credit card programme across the country, starting from August next year.
The alliance will build on Capital One’s expertise in the retail financial services market and Walmart’s size and position in omni-channel retailing.
Walmart and Capital One plan to utilise their respective technology platforms and capabilities to deliver digitally-enabled credit cards to customers.
Commenting on the partnership, Walmart said: “Walmart and Capital One share a common goal of transforming the way they serve customers through digitally-led innovations.”
Walmart will offer more information on the development in the coming months.
The retailer’s credit card programme was previously handled by Synchrony Financial, which reported in a SEC filing that its agreement with Walmart will not be renewed after expiration on 31 July 2019.
Synchrony further noted that it is considering strategic options for the Walmart portfolio, including a potential sale or retention of the portfolio and conversion of qualifying accounts to general purpose credit cards.
“The company expects that its strategic options would fully replace the diluted earnings per share impact of programme non-renewal,” Synchrony said in a statement.