Capital One will retain its existing Walmart credit card portfolio following an announcement from Synchrony and OnePay, predominantly owned by Walmart, of a new credit card initiative set to launch this fall. TD Cowen has indicated that Synchrony will not acquire the current Walmart card assets from Capital One. Consequently, the new program will need to be developed from the ground up, which initially may lead to a short-term negative impact on earnings as reserves are established. OnePay, a financial technology firm backed by Walmart, picked Synchrony to issue both a co-branded card that can be used outside Walmart as well as a private-label card that will be available just for purchases at the retailer. OnePay will begin offering the cards in the U.S. later this year. Synchrony issued the Walmart credit card for nearly two decades until 2018, when it lost the partnership to Capital One Financial. The latest deal does not include the balances tied to Walmart’s existing credit card program. The move is the latest sign that Walmart is looking to weave itself into the financial lives of millions of its shoppers, and it’s betting that OnePay, which is structured as an independent company, is its best shot at doing so. While the fintech is majority owned by the retailer, it is also backed by investment firm Ribbit Capital. Synchrony is best known as one of the largest issuers of co-brand credit cards, counting the likes of JCPenney, Lowe’s, Amazon.com and PayPal as partners. It also renewed its 30-year relationship with Walmart-owned Sam’s Club last year. Those five partnerships accounted for more than half the interest and fees the bank earned on its loans in 2024, according to a regulatory filing. Co-brand and private label credit cards are a crucial way that many merchants and card issuers use to monetize a customer’s loyalty to a certain brand or store. To that end, the new card will be the latest avenue of growth for OnePay, which already offers a variety of banking, lending and payment products. Walmart’s so-called Money Centers allow customers to cash checks, get their taxes prepared, pay their bills and access money orders. In some ways, with more than 4,600 stores across the U.S., the company already operates a network of branches that would rival those of JPMorgan, Bank of America and Wells Fargo. But Walmart executives have long been vocal about the need to digitize the array of financial services the company offers shoppers.