Charge it

13 July 2018 By Tom Buerkle Follow @tombuerkle

Investors knocked 7 pct off $25 bln consumer-finance firm Synchrony on fears the giant retailer will move its card business to Capital One. That looks optimistic, given Amex’s experience with Costco. But loosening credit standards suggest industry-wide pain lies ahead.

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Shares in Synchrony Financial fell just over 5 percent on July 12 after Bloomberg reported Walmart is considering moving its branded credit-card business to Capital One. The giant retailer is seeking a partner that can help it grow its mobile-payments offering, the report said.

Walmart executives believe Synchrony is keeping too much of the cards’ revenue and want the company to approve a higher percentage of applicants, the Wall Street Journal reported, citing people familiar with the matter.

Synchrony’s shares were down another 2 percent at $32.30 at 12:10 p.m. EDT on July 13.

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