Dive Brief:

• Walmart and Capital One on Wednesday announced a credit card program which features two credit cards that offer incentives to shoppers for their purchases at Walmart, as well as at other retailers, according to a company press release. The credit cards, branded with both Capital One and Walmart logos, will be available to consumers beginning Tuesday.

• Through the initiative dubbed "Capital One Walmart Rewards Credit Card Program," shoppers can earn 5% back for Walmart.com purchases and transactions made through Walmart Pay that are completed within 12 months of the initial offer. They'll also be able to earn 2% back on in-store Walmart purchases after the introductory offer, as well as 2% back for travel or restaurant transactions. For purchases made anywhere else shoppers can earn 1% back, per the press release.

• In the announcement, the companies highlighted various digital features, including allowing shoppers to text to apply for the card, connect their new cards to their Walmart Pay account and let users lock and unlock their card using Capital One's mobile app.

Dive Insight:

Walmart's collaboration with the financial services firm is an effort to help customers stretch their dollars further even when spending their money elsewhere, according to Daniel Eckert, senior vice president of Walmart services and digital acceleration. But the partnership is also geared toward keeping up with evolving consumer payment behaviors and expectations.

"As our company has evolved to serve customers shopping in stores, online, and on the Walmart apps, we also recognized the need to fully digitally enable the 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," Eckert said in the statement.

Walmart first announced its partnership with Capital One last year. Soon afterward, the company dismissed its $800 million lawsuit against credit card issuer Synchrony, which has gone on to partner with retailers like Amazon, HSN and Fanatics.  

The move could capture consumers where they spend most — with plastic rather than through retail apps, PYMNTS and LISNR report found. It's unclear how offering such benefits will appeal to younger shoppers given their post-Great Recession debt anxiety.