Walmart Inc. has chosen Capital One Financial Corp. as the new issuer of its store credit card, according to people familiar with the matter, ending a nearly 20-year partnership with Synchrony Financial.
Capital One COF, -2.47% will issue credit cards for the nation’s largest retailer by sales. The deal covers both the credit cards that can only be used at Walmart’s website and stores, as well as co-branded cards that can be used almost anywhere else, the people said.
Losing Walmart is a major blow to Synchrony SYF, -10.29% , the largest U.S. store-card issuer. Walmart WMT, +0.38% is one of Synchrony’s five biggest accounts, and it accounts for about 19% of Synchrony’s store-card portfolio, according to people familiar with the matter.
The switch from Synchrony to Capital One is the biggest shake-up in retail credit-card partnerships since Costco Wholesale Corp. dumped American Express Co. and moved to Citigroup Inc. in 2016. That switch is still rippling throughout the industry: Competition between card companies has intensified, especially for blue-chip partners like Walmart, and merchants are pressing their advantage to squeeze better terms out of deals.
An expanded version of this report appears on WSJ.com.
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