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Walmart Inc. (WMT) is in the green at writing after announcing an end to its years-long agreement with Capital One Financial Corp (COF).
What does it mean for existing cardholders?
$COF has been exclusively issuing Walmart Consumer Credit Cards since 2019. Last year, however, the retail behemoth accused it of being too slow in replacing lost cards and making transactions appear on cardholders’ accounts. While Walmart has now decided to part ways with Capital One, it does not immediately change things for existing cardholders, as per the press release on Friday.
Cardholders can continue to earn and redeem rewards and previously accrued rewards will retain their value.
Walmart topped Street estimates in Q1
Existing cardholders will be able to use their Walmart Rewards Card at all locations of the big box retailer as well as other stores that accept Mastercard.
“Capital One will retain ownership and servicing of the credit card accounts” as well, the press release added on Friday.
The news arrives only days after Walmart raised its full-year guidance after beating Street estimates for its first financial quarter (read more). Last month, the supermarket chain also said One will now offer BNPL loans to its customers to purchase big-ticket items. Wall Street currently has a consensus “overweight” rating on $WMT that pays a dividend yield of 1.27% at writing.More By This Author:Why Is Moderna Stock Up 10% On Wednesday? These Copper Stocks Are Buzzing As Copper Price Hits Record High Toll Brothers Q2 Earnings: Home Sales Revenue Jumped 6.0%
