News

Walmart selects Capital One as its exclusive card issuer

Friday 27 July 2018 09:23 CET | News

Walmart has announced that it ends its relationship with US credit card partner Synchrony, choosing Capital One to be the exclusive issuer of its cards.

According to Financial Times, Walmart’s switch to Capital One underlines the competitive nature of the tie-ups and how power struggles can erupt over the terms of the multibillion-dollar deals.

Walmart was among the five largest retail partners to Synchrony, which was spun off from General Electric in 2014. The chain’s cards generated more than a tenth of the credit card group’s total interest and fees on loans in 2017. Synchrony’s five largest tie-ups — with Gap, JCPenney, Lowe’s and Sam’s Club as well as Walmart — accounted for more than half of the income.

In response to Walmart’s decision, according to Financial Times, Synchrony announced that it was considering its options for the USD 10 billion worth of card balances that had already been issued through the partnership, including a possible sale of the portfolio to Capital One.


Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: Walmart, Capital One, card, Synchrony, ecommerce, US
Categories:
Countries: World