Walmart is feeling the heat of relentless competition and is doing everything to keep up or even better – get ahead of its main competitors, such as Target and Amazon. When it comes to store credit cards, Walmart can’t get that much ahead, but it can certainly keep up, which is why the retailer is offering new Capital One credit card for its customers. It has been lacking in this department for quite a while and it’s only time to finally offer something worth considering, especially knowing how many millions of customers shop at Walmart every single day.
The new credit card will be available starting September 24th and is called Capital One Walmart Rewards card. The new MasterCard is designated to help loyal customers collect rewards and then come back to the store to spend them.
The card offers some benefits that are pretty typical for store credit cards:
- 5% cash back on all online purchases
- 2% cash back on in-store buys
- 5% cash back on in-store orders for 12 months if a customer is signed up for Walmart Pay, which is the mobile payment option
- 2% cash back on dining and travel
- 1% cash back for all other outside of Walmart expenditures
Those benefits point out to two things. First, Walmart really doesn’t care about your shopping anywhere else and won’t reward you for that. This is typical for most retailers and this card in neither better, nor worse in this regard, just average. Second, the retailer really gets the importance of attracting as many consumers to shopping online as possible, hence 5% cash back for online orders versus 2% in-stores. The future is online and Walmart understands that judging by expansion of its grocery ordering online and delivery scope.
Every time there is something new, customers are curious and come shopping. Walmart hopes that this new card is also an incentive to come back to the stores and online.
People that have never been to Walmart, which is hard to imagine, might be attracted to check this new card out. There will also be a private label card with Capital One for within the company purchases.
- $10 OFF First Grocery Purchase
- Free Delivery on Grocery Orders
- $10 OFF Grocery Pickup of $50+
Walmart hopes that this new card is going to make additional and new connections with its customers, build partnership of sorts. According to Daniel Eckert, senior vice president for services and digital acceleration, the goal is to make this card the primary method of payment inside and outside of Walmart.
Walmart’s previous credit card deal with Synchrony offered just about ½ of all the benefits available from the new partnership with Capital One. Old cardholders will be automatically transferred to the new card starting in October.
This is how the two main competitors stack up against Walmart Capital One Rewards credit card:
Amazon Prime Rewards Visa Signature Card offers 5% cash back on all Amazon and Whole Foods purchases, 2% cash back on dining out, gas stations, and drug stores, and 1% cash back for all other shopping expenditures outside of Amazon.
Target’s Redcard has 5% cash back on all Target orders online and in-stores.