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COF
CNBC
71 days

Walmart is using its own fintech firm to provide credit cards after dumping Capital One

1. Walmart's OnePay launches new credit cards in partnership with Synchrony. 2. Capital One's partnership with Walmart ended due to a lawsuit. 3. OnePay aims to serve consumers underserved by traditional banks. 4. Walmart had 10 million card customers and $8.5 billion loans with Capital One. 5. Two card options include a general-purpose and a store-only card.

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FAQ

Why Very Bearish?

The lawsuit indicates deteriorating relations with a major retail partner, impacting COF's revenue. Similar cases in the past have shown considerable stock price drops amid partnership losses.

How important is it?

The shift in Walmart's credit card strategy directly affects COF's portfolio and revenue stream. COF's historical dependence on Walmart makes this news crucial.

Why Short Term?

The immediate fallout of losing a major partner like Walmart will reflect quickly in COF's stock. Over time, the long-term effects depend on COF's ability to secure new partnerships.

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