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Investing.com -- Shares of Synchrony Financial (NYSE:SYF) climbed 2.7% following news that the company has regained a partnership with Walmart Inc. (NYSE:WMT) to issue the retailer’s credit cards. The deal marks a significant return for Synchrony, which previously held the Walmart account for nearly two decades before it transitioned to Capital One Financial Corp (NYSE:COF). in 2018.
According to a report by Bloomberg, Walmart’s financial technology arm, OnePay, has selected Synchrony to issue a dual set of credit cards. These will include a co-branded card that can be used at various merchants and a private-label card exclusive to Walmart purchases. The reintroduction of Synchrony’s services is part of Walmart’s strategic effort to integrate more deeply into the financial activities of its customers. OnePay, primarily owned by Walmart with backing from Ribbit Capital, is set to launch these cards in the U.S. later this year.
The new arrangement with Synchrony does not involve the balances of Walmart’s existing credit card program. Details of the deal have not been made public, as representatives for Walmart, OnePay, and Synchrony have not provided comments on the matter.
Investors appear to be responding favorably to the announcement, as securing a deal with the world’s largest retailer is seen as a positive development for Synchrony’s business. The partnership is expected to enhance the company’s presence in the retail credit market and is indicative of Walmart’s broader ambitions in financial services.
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