Walmart launches new Capital One rewards card. What to know

Shop a lot at Walmart? A new credit card with a digital-first approach could be giving you money back on purchases plus other rewards.

The retail giant partnered with Capital One for two new cards, the Walmart Rewards Card that’s exclusively for purchases at Walmart and the co-branded Capital One Walmart Rewards Mastercard.

The rewards Mastercard comes with a number of perks, including 5 percent back on purchases from Walmart’s website and on in-store purchases when using Walmart Pay for the first year after approval — after that first year, the card will pay 2 percent back on in-store purchases. The card also pays 2 percent back on restaurants and travel and 1 percent back everywhere else.

The card comes with 17.99 percent - 26.99 percent variable APR, according to Capital One. There is no annual fee.

Shoppers can apply for the card by text and start buying on Walmart’s website and app as soon as they’re approved, without waiting for the card to arrive in the mail.

Daniel Eckert, senior vice president of Walmart services and digital acceleration, said the company saw a need to create a fully digital cardholder experience.

“That’s why we’ve worked with Capital One to make it possible for cardholders to manage essentially every interaction with the program right from the palm of their hands,” he said.

Cardholders who use Walmart Pay for in-store purchases can get 5 percent back for the first year and 2 percent back after that. (Credit: Walmart)

Cardholders have access to a number of Capital One’s digital tools, including real-time purchase notifications, security alerts, 0 percent fraud liability and the ability to lock and unlock the card through the Capital One app.

“We are using our technology expertise to transform the customer experience through a digital-first approach,” said Daniel Mouadeb, Capital One’s senior vice president and head of its Walmart partnership.

Current Walmart cardholders will also get all the perks. The company said they will be converted to the new rewards cards starting Oct. 11.