To keep up with what its competitors are offering, Walmart announced a new credit card program with Capital One on Wednesday.
The company said it would debut a co-branded card, the Capital One Walmart Rewards Mastercard, on September 24. The aim is to reward loyal customers of Walmart, and therefore to hook them to keep coming back.
The card offers shoppers several perks: 5% cash back on Walmart online orders and 2% cash back on Walmart purchases in stores. As a special offer, the card offers customers 5% cash back on Walmart purchases in stores for 12 months if they sign up for Walmart Pay, the company’s mobile payment option.
Customers also get 2% cash back for charges outside of Walmart on restaurants and travel and 1% back on all other purchases.
Walmart hopes its new credit card will give customers incentives to continue shopping at the store while spending money elsewhere. It also will offer a private-label card with Capital One exclusively for purchases through the company.
“It’s something that we saw as a really important component to the broader relationship that we continue to deepen with our Walmart shoppers,” Daniel Eckert, the company’s senior vice president services and digital acceleration, said Tuesday. “We also want this card to be the number one card of choice inside and outside of our stores.”
The new card with Capital One nearly doubles the rewards Walmart offered through its previous credit card program with Synchrony. Walmart will convert those cardholders over to its new program beginning in October.
It also puts Walmart on par with Amazon and Target’s credit card programs.
Amazon (AMZN) offers the Amazon (AMZN) Prime Rewards Visa Signature Card, which gives customers 5% back on Amazon (AMZN) and Whole Foods, 2% back at restaurants, gas stations and drug stores and 1% back on all other purchases.
Target’s Redcard offers 5% back on Target purchases.