Wal-Mart Canada Launches Credit Card, Plans More Bank Products

June 15 (Bloomberg) -- Wal-Mart Stores Inc., the world’s largest retailer, plans to offer more banking services and products in Canada after introducing a new MasterCard rewards card across the country.

“Over time, we would expect to launch additional products in the financial services area,” Trudy Fahie, president and chief executive officer of the Canadian banking unit, said in an interview in Bloomberg’s Toronto office today. “For now, it’s truly a singular focus on the cards.”

The credit card is the first offering from the retailer’s newly licensed bank in Canada, which plans to target the 1 million customers who visit the 318 Wal-Mart stores in the country each day.

Fahie wasn’t more specific about what banking products the Bentonville, Arkansas-based company may offer. The cards will be sold at checkout counters as well as about 200 kiosks that have been installed in Wal-Mart locations, she said.

The no-fee card carries an annual interest rate of 18.99 percent, she said. That compares with 19.97 percent for the MasterCard offered by President’s Choice Financial, the bank unit of Loblaw Cos., the country’s biggest supermarket chain.

The MasterCard offers holders loyalty rewards for every dollar they spend, which can be redeemed for merchandise, Wal-mart Canada Bank said today in an e-mailed statement.

Wal-Mart joins other retailers including Loblaw and Canadian Tire Corp. that offer banking services in Canada. Wal-Mart already offers gift cards and money transfers in the country.

Related News and Information: Top Canadian news: {TOPC <GO>} Top financial news: {FTOP <GO>} Canadian bank news: {TNI CANADA BNK <GO>}

To contact the reporter on this story: Sean B. Pasternak in Toronto at spasternak@bloomberg.net.

To contact the editors responsible for this story: David Scanlan at dscanlan@bloomberg.net; Alec McCabe at amccabe@bloomberg.net