Walmart, the world's largest retailer, has announced an exciting development through its majority-owned fintech startup, OnePay. On Monday, OnePay revealed that it is launching a pair of new credit cards in collaboration with Synchrony, a leading player in the retail credit card sector. This strategic partnership aims to enhance the shopping experience for millions of Walmart customers by providing them with tailored financial products.
Starting in the fall, Synchrony will issue the new credit cards and manage underwriting decisions. OnePay, established in 2021 alongside venture firm Ribbit Capital, will oversee the customer experience through its user-friendly mobile app. This is a significant shift for Walmart, which had previously relied on Capital One as the exclusive provider for its credit card services since 2018. However, in a surprising turn of events in 2023, Walmart initiated legal action against Capital One, aiming to terminate their partnership early. This move was seen as a strategy to transition transactions to OnePay.
Prior to the split, the Walmart credit card program boasted an impressive customer base of approximately 10 million and around $8.5 billion in outstanding loans, as noted by Fitch Ratings. The shift to OnePay not only reflects Walmart's ambition to expand its fintech capabilities but also underscores the company's desire to collaborate with established financial institutions rather than navigating the complexities of the financial services landscape alone.
In March, OnePay made headlines by partnering with Klarna, a Swedish fintech company, to introduce buy now, pay later loan options at Walmart, despite earlier trials of its own installment loan program. This move is part of OnePay’s broader strategy to become a comprehensive financial services provider for Americans who may feel underserved by traditional banks. The company has steadily expanded its offerings to include debit cards, high-yield savings accounts, and a digital wallet that supports peer-to-peer payments.
The upcoming credit card offerings will feature two distinct options: a general-purpose credit card that can be used anywhere Mastercard is accepted and a store card exclusively for purchases at Walmart. For customers whose credit profiles may not qualify them for the general-purpose card, the store card will be available as an alternative, ensuring broader access to credit. While OnePay has yet to disclose specific rewards associated with these cards, the anticipation is building among consumers.
OnePay's CEO, Omer Ismail, expressed enthusiasm about the new credit card program, stating, "Our goal with this credit card program is to deliver an experience for consumers that's transparent, rewarding, and easy to use." This partnership with Synchrony is expected to fulfill these objectives and effectively serve millions of customers. The collaboration not only enhances Walmart's financial services but also positions OnePay as a formidable player in the fintech landscape.
As OnePay continues to innovate and expand its offerings, the integration of these new credit cards promises to provide Walmart shoppers with enhanced financial flexibility and rewards, reinforcing Walmart's commitment to serving its customers effectively.
In conclusion, Walmart's OnePay, in partnership with Synchrony, is poised to make significant strides in the financial services sector by catering to the needs of its customers through innovative credit solutions.
