Synchrony Financial’s credit card program with Walmart ends
(Reuters) – Synchrony Financial (SYF.N) said on Thursday that its store credit card program with Walmart Inc (WMT.N) will not be renewed, ending a near two-decade long partnership.
Shares of the company, which issues private-label cards as well as co-branded cards, fell 10 percent to $30.15 in late-afternoon trading.
Synchrony’s strategic options for its Walmart cards program, including a possible sale, is expected to fully offset the impact to its earnings per share, according to a regulatory filing from Synchrony.
Earlier on Thursday, the Wall Street Journal reported that Walmart had chosen Capital One Financial Corp (COF.N) as the new issuer of its store credit card, citing people familiar with the matter.
Under the deal, Capital One will issue credit cards that can only be used on Walmart’s website and stores, as well as co-branded cards that can be used almost anywhere else, the Journal reported.
Synchrony said it expects to use the majority of $2.5 billion that could come from the sales of its Walmart portfolio to buy back shares by the end of 2019.
Walmart and Capital One did not immediately respond to requests for comment.
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