Bentonville, Arkansas – Walmart, a retail giant known for its wide range of products, has recently announced the termination of its partnership with Capital One, a move that marks a significant shift in its consumer credit card offerings. The joint statement issued by both companies on Friday brought an end to Capital One’s exclusive issuer status for Walmart’s consumer credit cards, signaling a change that could impact millions of cardholders.

This decision comes after Walmart’s collaboration with Capital One in 2019, following the conclusion of a previous credit card agreement with Synchrony Financial. The rewards program associated with the Capital One Walmart Rewards cards, offering benefits like cashback on in-store purchases and online orders, was part of a deal set to run through 2026. However, Walmart’s dissatisfaction with Capital One’s services eventually led to a legal dispute between the two companies.

In 2023, Walmart filed a lawsuit against Capital One, citing delays in payment processing and card replacement as primary concerns. The lawsuit alleged that Capital One had failed to meet Walmart’s service standards, prompting Walmart to seek early termination of the agreement. Despite Capital One’s denial of any grounds for contract termination, a federal judge ruled in favor of Walmart in March, paving the way for the partnership’s dissolution.

As Capital One discloses approximately $8.5 billion in loans within Walmart’s existing credit card portfolio, the retail giant now faces the task of exploring new banking partnerships. The decision to part ways with Capital One leaves Walmart in search of a new financial institution to manage its consumer credit card programs, a process that remains uncertain at present. When approached for comment, Walmart remained silent on potential future banking partners, leaving room for speculation on the company’s next move.