Walmart Returns to Synchrony for Credit Card Issuance Through Fintech Partnership

Walmart Inc. $WMT is reestablishing its partnership with Synchrony Financial $SYF for the issuance of its credit cards, signaling a renewed push into consumer finance. The decision comes as Walmart-backed fintech platform One, operated by OnePay, selects Synchrony to issue both co-branded and private-label credit cards, set to launch later in 2025.

This partnership marks a significant shift from Walmart's previous relationship with Capital One Financial Corp. $COF, which took over the retail giant’s credit card program in 2018. Unlike the prior agreement, the new arrangement does not include the transition of legacy customer balances or portfolio migration, underscoring a fresh operational and strategic beginning for Walmart's financial services vertical.

Implications for Synchrony and Competitive Landscape

The reinstated alliance with Walmart reinforces Synchrony's position as a major issuer of private-label credit and retail finance solutions. For Synchrony, reclaiming a high-profile partner like Walmart — the world's largest retailer by revenue — restores a lucrative distribution channel lost nearly seven years ago. This development also intensifies competition among major financial institutions vying for co-branded partnerships in the consumer lending space, particularly as retailers increasingly prioritize embedded finance and integrated digital banking experiences.

Dual-Card Structure to Target Broader Consumer Segments

The upcoming product suite will consist of two distinct offerings:

• Co-branded credit card: Usable across merchants worldwide, aimed at customers seeking flexible credit beyond Walmart channels.

• Private-label store card: Limited to purchases within Walmart's physical and digital retail ecosystem, targeting core shoppers.

This structure enables Walmart to segment its consumer credit proposition while also reinforcing loyalty programs and transaction data integration — a key pillar in modern retail analytics and personalization strategies.

Broader Context: Retailers Deepen Fintech Integration

Walmart's renewed credit card initiative comes as part of a larger strategy to expand its footprint in digital financial services. Through OnePay, Walmart aims to create a full-service fintech platform capable of offering banking, lending, and payment solutions directly to its massive customer base.

This mirrors trends seen in other U.S. retailers and global e-commerce players moving to internalize financial operations, increase margins, and reduce reliance on traditional banks. The direct issuance model — bolstered by Synchrony's infrastructure — also offers Walmart tighter control over credit risk, customer data, and cross-selling opportunities.

Outlook: Strengthening Consumer Finance Position Without Portfolio Risk

The absence of a legacy portfolio transfer in the Synchrony deal suggests a deliberate effort by Walmart and OnePay to start from a clean slate. While this removes the burden of integrating existing customer credit exposure, it also delays the accrual of immediate receivables or interest income from an inherited base. However, the move allows Walmart to shape its program from inception around digital-first principles, mobile app integration, and targeted loyalty incentives — aligning with evolving consumer behavior.