Walmart Launches In-House Fintech to Offer Credit Cards After Ending Partnership with Capital One

Walmart is stepping up its game in the financial services world. Their fintech startup, OnePay, announced they’re launching two new credit cards in partnership with Synchrony, a key player in retail financing.

OnePay aims to handle customer experiences through its mobile app. This move comes after Walmart ended its long-standing relationship with Capital One, which had been managing its credit cards since 2018. Walmart’s decision to switch was partly influenced by a legal dispute with Capital One, which arose as Walmart sought to consolidate its financial services under its own brand.

Statistics show that the previous Walmart card program had around 10 million customers and $8.5 billion in outstanding loans as of last year. With this new direction, OnePay is showing it’s serious about scaling quickly. Instead of building everything from scratch, it’s partnering with established financial firms like Synchrony and Klarna, a Swedish fintech known for its buy now, pay later loans.

The new offerings include a general-purpose credit card that works wherever Mastercard is accepted, and a store card for Walmart purchases only. This setup allows customers with varying credit backgrounds to have access to credit, which is a big win for those who may struggle to get traditional loans.

OnePay’s approach is focused on creating a user-friendly experience. “Our goal is to deliver a transparent and rewarding experience,” said OnePay CEO Omer Ismail. This reflects a growing trend among retailers to provide more comprehensive financial solutions for customers.

As more Americans turn to alternative financial services, it’s crucial to consider the larger implications. According to a recent report from the Federal Reserve, nearly one in five U.S. adults are unbanked or underbanked. This trend underscores the need for companies like OnePay to fill the gaps left by traditional banks, especially in underserved communities.

By focusing on inclusivity and ease of use, OnePay might just redefine how retailers approach finance. The upcoming card offerings will surely stir interest among consumers, changing the landscape of retail banking as we know it.

For more information, you can read about OnePay’s plans directly here.

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