Sam’s Club, Synchrony Grow Strategic Partnership
Financial services company Synchrony has extended its strategic partnership with Sam’s Club, a division of Walmart Inc., to continue offering the club retailer’s members financing options through Sam’s Club-branded credit cards. As part of the deal, Synchrony will continue to manage and service the credit card programs for Sam's Club members at the chain’s nearly 600 clubs.
Synchrony has also come to an agreement on the sale of the Walmart loan portfolio it currently services, with the portfolio expected to transfer late in the third quarter or early in the fourth quarter of 2019. Further, Walmart has agreed to dismiss its lawsuit against Synchrony.
As reported by various news outlets, the mega-retailer filed suit last November, alleging that the lender breached their nearly 20-year agreement for credit cards issued to Walmart customers, and seeking damages of at least $800 million. Walmart signed an agreement last year with Capital One Financial to issue its private label and co-branded credit cards.
“Obtaining certainty around the Walmart portfolio and a renewal on Sam’s Club is a great outcome for the company,” said Margaret Keane, president and CEO of Stamford, Conn.-based Synchrony. “Sam’s Club is a valued and longstanding partner. We look forward to continuing to deliver innovative products and excellent customer service to Sam’s Club members.”
According to Keane: “This extension is the latest in a series of renewals and key customer initiatives which highlight the strength of our best-in-class marketing and technology capabilities. We continue to build momentum as we provide credit and payment solutions that deliver value to our partners and pursue opportunities that enhance value for Synchrony.”
Synchrony and Sam's Club first teamed up in 1993 by providing credit programs for business members, added revolving credit programs for Sam's Club consumer members two years later, and currently offer Sam’s Club co-branded and private label credit card programs for Club and Plus members, which also serve as membership cards.
Member credit cardholders receive such benefits as a comprehensive cash-back rewards program (5 percent on gas, 3 percent on dining and travel, 1 percent everywhere else) for the co-branded card, no annual fee, in-club cash access, online account management, one-card convenience, mobile payment capabilities, special financing promotions, and savings opportunities.
Synchrony is integrated into all of Sam's Club channels, accelerating digital capabilities, such as the retailer’s Scan & Go program, to boost speed, reduce friction and create positive member experiences.
Bentonville, Ark.-based Walmart is No. 1 on Progressive Grocer’s 2018 Super 50 list of the top grocers in the United States.