New Credit Card Offers 5% Cash Back at Walmart For a Year

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Attention Walmart shoppers! Capital One will launch a Walmart store card and credit card September 24. The no annual fee co-brand credit card, the Capital One Walmart Rewards Mastercard, will offer:

  • 5% back on purchases at Walmart.com, inclusive of Walmart Grocery Pickup and Delivery.
  • 5% back on in-store purchases when using Walmart Pay for the first 12 months after approval (2% back on Walmart purchases in stores after 12 months).
  • 2% back on restaurants and travel.

The card has no foreign transaction fees.

One of the things I find most interesting about the card is what they’re calling a “mobile application experience.” A real challenge card issuers face is that consumers are increasingly going online with mobile, but haven’t moved to apply for cards with mobile devices. Here’s how they’re attacking this challenge,

Applicants can text to apply from anywhere and complete their application from their personal mobile devices. Once applicants are approved and their identity is verified, they will receive immediate access to their card for Walmart purchases. If new cardholders sign up for Walmart Pay or already have an account, they can easily load their card into the Walmart app for use in-store and on Walmart.com—there is no need to wait for the card to arrive in the mail.

I don’t know whether ‘text to apply’ or Capital One’s implementation is going to crack the code, but it’s interesting to see issuers strategize on how to obtain applications via mobile. Meanwhile immediate card access and loading cards onto mobile wallets is important for getting immediate consumer adoption.

The notion of waiting a week and a half for a card in the mail is antiquated. Consumers apply for cards when they want to use them, and issuers risk losing consumer attention if they don’t deliver immediate use options.

Capital One has acquired the Synchrony Financial back book, so existing Walmart cardmembers will convert to new prodcuts October 11 (“with updated cards arriving in the mail beginning in November”). Interestingly existing Walmart cardmembers will receive the first year offer of 5% back using their card with Walmart Pay for in-store purchases through October 14, 2020.

Ultimately this isn’t a product for me. I’m not a regular Walmart customer. However it’s great to see a no annual fee card with strong first year earning for those who are, with no foreign transaction fees.

After first year though, and for purchases outside the Walmart ecosystem, it seems far better to get a Citi Double Cash Card which has no annual fee and will provide 2% back on everything across the board.

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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Editorial note: any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Comments made in response to this post are not provided or commissioned nor have they been reviewed, approved, or otherwise endorsed by any bank. It is not the responsibility of any advertiser to ensure that questions are answered, either. Terms and limitations apply to all offers.

Comments

  1. How certain is the “existing card members get the first year at 5%”? We will absolutely sign up for this offer as we spend a ridiculous amount at WM annually. I know the current signup bonus is ridiculously weak, but I might as well take an extra $25 or $50 from the current signup bonus if it will definitely still get the year at 5% rebate.

  2. Very interesting. There’s an MS’er that’s at my local WMNM every single day – typically liquidating VGC’s that he’s obviously bought elsewhere – but a few weeks ago I happened to be behind him in this WMNM’s Money Services line when he BOUGHT $19K+ in VGC’s in one single transaction. Dollars to donuts he’s going to be applying for this new Cap One card.

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