Bentonville, Arkansas – Walmart has decided to end its partnership with Capital One, which served as the exclusive issuer of Walmart’s consumer credit cards. The companies jointly announced the termination of their agreement on Friday. Existing cardholders can still utilize their Capital One Walmart Rewards cards and continue earning rewards unless notified otherwise. Capital One will maintain ownership and management of the credit card accounts.
In 2019, Walmart, headquartered in Bentonville, Arkansas, entered into a partnership with Capital One after terminating its previous credit card deal with Synchrony Financial. This co-branded rewards card offered benefits like cash back on in-store purchases and online orders for pickup or delivery. The partnership was set to run through 2026, but Walmart eventually decided to part ways with Capital One.
Legal issues arose between Walmart and Capital One in 2023 when Walmart filed a lawsuit against the McLean, Virginia-based company, citing delays in payment processing and card replacement. The lawsuit alleged that Capital One failed to meet Walmart’s service standards. A federal judge ruled in favor of Walmart in March, leading to the termination of the partnership.
Capital One disclosed in a government filing that there are approximately $8.5 billion in loans within Walmart’s existing credit card portfolio. As Walmart seeks a new banking partner, the timeline for selecting one remains uncertain. Attempts to reach Walmart for comment on the matter were unsuccessful.
The end of the partnership with Capital One signifies a significant change for Walmart’s credit card offerings and may impact cardholders. Moving forward, Walmart will need to establish a new partnership to continue providing its customers with credit card options. The company’s decision to seek a new banking partner reflects its commitment to ensuring a seamless and efficient credit card experience for its customers.