How do you pay when you go to the supermarket? Walmart has just announced the end of one of the most chosen methods by its customers (perhaps even the most popular). In fact, it also means the end of many of the benefits enjoyed by those who did it that way, something that is now raising the indignation of thousands of people. We explain what has happened.
Walmart puts an end to this payment method: you will no longer be able to use it.
In a significant shift, Walmart has decided to end its long-standing credit card partnership with Capital One in 2025, three years earlier than originally planned. The retail giant had signed a 10-year agreement with Capital One in 2014 to be the exclusive issuer of Walmart credit cards.
However, Walmart recently exercised its contractual right to terminate the deal early amid a push to grow its own financial products business. The early exit from the Capital One deal will allow Walmart to take back control of its branded credit cards and offer new financial services tailored to its customers.
While Capital One may appeal the termination in court, Walmart appears intent on regaining ownership of key customer data and shaping the next generation of its financial offerings. The breakup with Capital One foreshadows a new era for Walmart’s financial services strategy.
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In 2010, Walmart entered into a 10-year agreement with Capital One to issue credit cards for Walmart shoppers. This exclusive partnership gave Capital One the right to be the only issuer of Walmart’s store credit cards during that time period. The original deal was scheduled to last until 2028.
When the partnership first launched, it was seen as a major win for both companies. For Walmart, it gave them access to Capital One’s expertise in credit cards and financial services. And for Capital One, it gave them access to Walmart’s huge base of customers.
Over the 10 years, millions of Walmart shoppers signed up for Capital One’s Walmart credit cards. The cards offered benefits like discounts on purchases and cash back rewards. So for a decade, Capital One was woven into the fabric of Walmart’s retail operations.
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By managing its own credit card program, Walmart can use customized rewards and financing to build stronger loyalty with its customers. For example, the retailer could offer special rewards points on Walmart purchases or low-interest financing on major appliance purchases made with the Walmart card.
Bringing the credit card in-house also allows Walmart to integrate it with its other financial services like the Walmart MoneyCard debit card, Walmart Pay, and other new products in development. With Capital One as the issuer, Walmart likely had less control over connecting the credit card with its broader financial ecosystem.
Now Walmart is betting it can grow faster and be more innovative if it has full control over its retail credit cards. The partnership with Capital One gave Walmart flexibility initially, but the retailer has outgrown the arrangement as its financial services ambitions have expanded.
Capital One expressed disappointment in the court’s ruling allowing Walmart to end their long-standing credit card partnership early. Though the original agreement was for 10 years, Walmart sought to terminate it after just 5 in order to pursue other financial products and services.
As you can see, the breakup between Walmart and Capital One credit card also means the arrival of new payment methods, of which we still know nothing. Even taking into account the chain’s justified reasons for making this decision, we are shocked that they have taken it so bluntly. In any case, we remain attentive to the alternatives that are known.