FinTech News
Synchrony to Issue OnePay Credit Card with Walmart
Walmart’s FinTech OnePay (formerly ONE) is set to partner with Synchrony for a new credit card offering.
About the Upcoming Card:
Today, Synchrony revealed a strategic partnership with Walmart that will result in a new credit card program. This new line-up will be embedded into the OnePay app, which is a FinTech platform owned by Walmart and Ribbit Capital. Expected to launch this fall, the program’s cards will operate on the Mastercard network and will be made available to Walmart customers in the United States.
According to a press release, OnePay and Synchrony will not only introduce a regular co-brand card but will also offer a private label option. The latter will only be accepted at Walmart, while the main card can be used wherever Mastercard is accepted.
While these new products will mark OnePay’s first credit card offerings, the app currently offers a rewards debit card. With that card, OnePay Cash+ members (those with $500 a month or more in direct deposits or who maintain a balance of $5,000 or more) can earn 3% back on Walmart purchases, up to $150 in spending per month. Those with OnePay Cash+ also currently earn 3.75% APY on savings among other perks.
The Backstory:
Previously, Synchrony issued a Walmart co-branded card before the retailer transitioned to Capital One in 2019. However, the two companies parted ways last year. At the time, reports suggested that Walmart had wanted to bring its then-called ONE app into the issuing process.
What They’re Saying:
Commenting on the upcoming credit products, OnePay’s CEO Omer Ismail said, “Our goal with this credit card program is to deliver an experience for consumers that’s transparent, rewarding, and easy to use. We’re excited to be partnering with Synchrony to launch a program at Walmart that checks each of those boxes and will help serve millions of people.”
Meanwhile, Synchrony president and CEO Brian Doubles said of the partnership, “We are proud to be selected by OnePay to further our mission of helping people live better and build healthier financial futures with Walmart. Together, we aim to drive even greater innovation and new credit experiences to better serve customers while driving long-term, high-quality growth.”
My Thoughts:
This story absolutely fascinates me as I’ve been covering the elements of this update for quite some time now. I’m old enough to remember when Walmart dumped Synchrony for Capital One (before suing the bank and later breaking off their partnership) and have watched as One was acquired by Walmart and, most recently, turned into OnePay. So to see Synchrony come back into the fold to issue a Walmart card in OnePay truly is a full-circle moment.
As for the product itself, one issue I could see Synchrony having is crafting a credit card that offers more to shoppers than the existing OnePay debit card does. After all, OnePay customers can already earn 3% back on Walmart purchases — although this is capped at $150 in spending per month and requires direct deposit. The previous Walmart credit card offered 5% on Walmart.com purchases but only 2% in-store (aside from a special intro period), so I think uncapping that 3% for the credit card would go a long way toward making it a decent option for shoppers.
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