Walmart’s fintech startup, OnePay, has announced a partnership with Synchrony to launch two new credit cards for Walmart customers. Synchrony, a key player in retail cards, will issue the cards and handle underwriting decisions starting in the fall. OnePay, created by Walmart in 2021 in collaboration with Ribbit Capital, will manage the customer experience for the card program through its mobile app.
This move comes after Walmart ended its exclusive partnership with Capital One in 2023, which had been in place since 2018. Walmart sued Capital One in order to exit the relationship early, with Capital One alleging that Walmart was looking to shift transactions to OnePay. The Walmart card program had 10 million customers and approximately $8.5 billion in loans outstanding when the partnership with Capital One ended.
OnePay’s decision to partner with established players like Synchrony demonstrates its strategy to quickly expand in financial services. In March, OnePay announced a partnership with Swedish fintech firm Klarna to handle buy now, pay later loans at Walmart.
As part of its goal to become a one-stop shop for underserved Americans, OnePay has expanded its offerings to include debit cards, high-yield savings accounts, and a digital wallet with peer-to-peer payments. The new credit cards from OnePay will include a general-purpose card accepted anywhere Mastercard is taken, as well as a store card exclusively for Walmart purchases. Customers who do not qualify for the general-purpose card will be offered the store card instead.
Details on rewards for using the new credit cards have not yet been disclosed. OnePay CEO Omer Ismail expressed excitement about the partnership with Synchrony, stating that the goal is to provide consumers with a transparent, rewarding, and user-friendly experience. The collaboration with Synchrony was first reported by Bloomberg.
Overall, the partnership between OnePay and Synchrony marks a significant step in OnePay’s efforts to expand its financial services offerings and provide valuable solutions to Walmart customers.
