Walmart Partners with MasterCard for Store Branded Credit Cards
MasterCard will be the new payment network for Walmart’s store-branded credit cards, ending the nine year partnership between Discover and Walmart. MasterCard will also handle all the transactions on the store-branded credit cards for the Sam’s club subsidiary. General Electric’s Capital Retail Bank will be the store card’s issuer.
“The conversion of the Walmart and Sam’s Club co-brand programs to MasterCard is further evidence of the strong and growing partnership between our organizations for the benefit of consumers,” said Craig Vosburg, MasterCard’s chief product officer, in a statement.
Walmart indicated its credit cards will convert to MasterCard later this year and Sam’s Club credit cards will be switching in June.
With over 100 million customers under the Walmart credit card network, this contract is a significant gain for MasterCard.
The news is another negative blow for Visa as it comes on the heels of Walmart’s suit against Visa for $5 billion over credit card swipe fees they believe the credit card processor illegally inflated.