The US government should stop demanding tech companies compromise on encryption

In a tweet late Tuesday, President Trump criticized Apple for refusing “to unlock phones used by killers, drug dealers and other violent criminal elements.” Trump was specifically referring to a locked iPhone that belonged to a Saudi airman who killed three U.S sailors in an attack on a Florida base in December.

It’s only the latest example of the government trying to gain access to a terror suspect’s device it claims it can’t access because of the encryption that scrambles the device’s data without the owner’s passcode.

The government spent the past week bartering for Apple’s help. Apple said it had given to investigators “gigabytes of information,” including “iCloud backups, account information and transactional data for multiple accounts.” In every instance it received a legal demand, Apple said it “responded with all of the information” it had. But U.S. Attorney General William Barr accused Apple of not giving investigators “any substantive assistance” in unlocking the phone.

Jumia, DHL, and Alibaba will face off in African ecommerce 2.0

The business of selling consumer goods and services online is a relatively young endeavor across Africa, but ecommerce is set to boom.

Over the last eight years, the sector has seen its first phase of big VC fundings, startup duels and attrition.

To date, scaling e-commerce in Africa has straddled the line of challenge and opportunity, perhaps more than any other market in the world. Across major African economies, many of the requisites for online retail — internet access, digital payment adoption, and 3PL delivery options — have been severely lacking.

Still, startups jumped into this market for the chance to digitize a share of Africa’s fast growing consumer spending, expected to top $2 billion by 2025.

African e-commerce 2.0 will include some old and new players, play out across more countries, place more priority on internet services, and see the entry of China.

But before highlighting several things to look out for in the future of digital-retail on the continent, a look back is beneficial.

Jumia vs. Konga

The early years for development of African online shopping largely played out in Nigeria (and to some extent South Africa). Anyone who visited Nigeria from 2012 to 2016 likely saw evidence of one of the continent’s early e-commerce showdowns. Nigeria had its own Coke vs. Pepsi-like duel — a race between ventures Konga and Jumia to out-advertise and out-discount each other in a quest to scale online shopping in Africa’s largest economy and most populous nation.

Traveling in Lagos traffic, large billboards for each startup faced off across the skyline, as their delivery motorcycles buzzed between stopped cars.

Covering each company early on, it appeared a battle of VC attrition. The challenge: who could continue to raise enough capital to absorb the losses of simultaneously capturing and creating an e-commerce market in notoriously difficult conditions.

In addition to the aforementioned challenges, Nigeria also had (and continues to have) shoddy electricity.

Both Konga — founded by Nigerian Sim Shagaya — and Jumia — originally founded by two Nigerians and two Frenchman — were forced to burn capital building fulfillment operations most e-commerce startups source to third parties.

That included their own delivery and payment services (KongaPay and JumiaPay). In addition to sales of goods from mobile-phones to diapers, both startups also began experimenting with verticals for internet based services, such as food-delivery and classifieds.

While Jumia and Konga were competing in Nigeria, there was another VC driven race for e-commerce playing out in South Africa — the continent’s second largest and most advanced economy.

E-tailers Takealot and Kalahari had been jockeying for market share since 2011 after raising capital in the hundreds of millions of dollars from investors Naspers and U.S. fund Tiger Global Management.

So how did things turn out in West and Southern Africa? In 2014, the lead investor of a flailing Kalahari — Naspers — facilitated a merger with Takealot (that was more of an acquisition). They nixed the Kalahari brand in 2016 and bought out Takelot’s largest investor, Tiger Global, in 2018. Takealot is now South Africa’s leading e-commerce site by market share, but only operates in one country.

In Nigeria, by 2016 Jumia had outpaced its rival Konga in Alexa ratings (6 vs 14), while out-raising Konga (with backing of Goldman Sachs) to become Africa’s first VC backed, startup unicorn. By early 2018, Konga was purchased in a distressed acquisition and faded away as a competitor to Jumia.

Jumia went on to expand online goods and services verticals into 14 Africa countries (though it recently exited a few) and in April 2019 raised over $200 million in an NYSE IPO — the first on a major exchange for a VC-backed startup operating in Africa.

Jumia’s had bumpy road since going public — losing significant share-value after a short-sell attack earlier in 2019 — but the continent’s leading e-commerce company still has heap of capital and generates $100 million in revenues (even with losses).

Walmart partners with self-driving startup Nuro to test autonomous grocery delivery in Houston

Walmart this morning announced a new pilot program that will test autonomous grocery delivery in the Houston market starting next year. The retailer is partnering with autonomous vehicle company Nuro, a robotics company that uses driverless technology to deliver goods to customers. Nuro’s vehicles in this case will delivery Walmart online grocery orders to a select group of customers who opt into the service in Houston.

The autonomous delivery service will involve R2, Nuro’s custom-built delivery vehicle that carries products only with no onboard drivers or passengers, as well as autonomous Toyota Priuses that deliver groceries.

The program’s goal is to learn more about how autonomous grocery delivery could work and how such a service can be improved to better serve Walmart’s shoppers.

Nuro’s focus to date has been developing a self-driving stack and combining it with a custom unmanned vehicle designed for last-mile delivery of local goods and services. The vehicle has two compartments that can fit up to six grocery bags each.

The company has raised more than $1 billion from partners, including SoftBank, Greylock Partners and Gaorong Capital. In March, the company announced it had raised $940 million in financing from Softbank Vision Fund.

Nuro is known for its pursuit of autonomous delivery. But it also licensed its self-driving vehicle technology to Ike, the autonomous trucking startup. Ike now has a copy of Nuro’s stack, which is worth billions, based on this latest round. Nuro also has a minority stake in Ike.

Nuro’s partnership with Walmart is hardly its first. The company partnered in 2018 with Kroger to pilot a delivery service in Arizona. The pilot, which initially used Toyota Prius vehicles, transitioned in December to the delivery bot. The autonomous vehicle called R1 is operating as a driverless service without a safety driver on board in the Phoenix suburb of Scottsdale.

The Nuro partnership isn’t Walmart’s first autonomous delivery pilot, either. The retailer earlier this year tapped the startup Udelv to test autonomous grocery deliveries in Arizona. This summer, it kicked off a test with Gatik A.I., an autonomous vehicle startup to test grocery delivery from Walmart’s main warehouse in Bentonville, Arkansas. Walmart also launched a pilot with self-driving company Waymo in 2018 to test rides to Walmart for grocery pickup, as well as a test with Ford and Postmates for autonomous grocery delivery.

“Our unparalleled size and scale has allowed us to steer grocery delivery to the front doors of millions of families – and design a roadmap for the future of the industry,” said Tom Ward, Walmart’s SVP of digital operations, in a statement. “Along the way, we’ve been test driving a number of different options for getting groceries from our stores to our customers’ front doors through self-driving technology. We believe this technology is a natural extension of our Grocery Pickup and Delivery service, and our goal of making every day a little easier for customers,” he aded.

Walmart’s Online Grocery business is booming, but today still relies on partnerships with third-party delivery services. Currently, Walmart partners with delivery providers across the U.S. to facilitate deliveries, including Point Pickup, Skipcart, AxleHire, Roadie, Postmates, and DoorDash. It has also tried, then ended, relationships with DelivUber and Lyft in the past. By the end of 2019, Walmart Grocery will offer nearly 3,100 pickup locations and 1,600 stores that support grocery delivery.

The retailer’s investments in its online grocery business helped boost sales and benefitted consumers by offering an affordable competitor to Amazon, Target’s Shipt, Instacart, and others. In Q3, Walmart’s grocery business helped online sales grow 41%, ahead of the 35% gain expected, leading Walmart to another earnings beat and 21 quarters of growth in the U.S.

In the quarter, Walmart earnings rose to $1.16 a share on revenue of $127.99 billion. However, Walmart’s e-commerce business is losing money as it continues to invest in new technologies and acquisitions, which has led to internal tensions.

Walmart says its pilot program will Nuro will kick off in 2020.

Cyber Monday on track to deliver $9.4B in US online sales

Cyber Monday online sales are on track to hit $9.4 billion today, a figure that’s up 18.9% year-over-year, and even larger than Black Friday’s record-breaking $7.4 billion in online sales, according to analytics from Adobe.

As of 9 AM Eastern on Cyber Monday, U.S. online shoppers had already spent $473 million, Adobe says.

Adobe’s forecasts and reports are based on over 1 trillion visits to U.S. online retail sites and 55 million SKUs. And its Adobe Analytics service is able to measure transactions from 80 of the top 100 U.S. retailers.

Retailers smartly addressed the shortened post-Thanksgiving time frame by rolling out their deals a week earlier. That plan worked, as U.S. consumers spent a record $72.1 billion online shopping since November 1, representing 16.3% year-over-year growth.

Through this weekend, consumers spent $7.4 billion, including “Small Business Saturday” and “Super Sunday,” which are newer terms for the big shopping days after Thanksgiving and Black Friday .

Top sellers so far have included Frozen 2 toys, L.O.L Surprise Dolls, Paw Patrol toys, video games like Madden 20 and FIFA 20 and the Nintendo Switch. Electronics like Samsung TVs, Apple laptops and Amazon Echo devices also sold well. One report claims Apple may have sold as many as 3 million pairs of AirPods from Black Friday until today.

Adobe says Cyber Monday shoppers today can expect the biggest discounts on TVs (savings of 19%, on average), toys (20% savings) and computers (18% savings). Furniture and bedding, however, may be cheaper on Giving Tuesday (tomorrow), at 10% off.

In addition to the usual factors that influence Cyber Monday sales, the shopping holiday may get a boost from the bad weather, too. When extreme weather arrives, shoppers tend to stay indoors and shop at home. On Black Friday, for example, states that recorded more than two inches of snow saw a 7% bump in online sales.

“Online shopping received some unexpected boosts this holiday season. Retailer fears of a shorter season meant that deals came much sooner than usual, and consumers took notice. In some areas of the country, adverse weather in the form of snow and heavy rain meant that many opted to stay home instead and grabbed the best deals online. Just look at Black Friday, which brought in $7.4 billion online and is just below last year’s Cyber Monday at $7.9 billion,” said Taylor Schreiner, principal analyst and head of Adobe Digital Insights.

“Consumers are reimagining what it means to shop during the holidays, with smartphones having a breakout season as well. We expect that consumers will spend $14 billion more this holiday season via their phones,” Schreiner added.

Adobe also notes that Cyber Monday’s four golden hours — 10 PM through 2 AM ET — will bring in 30% ($2.8 billion) of today’s revenue as shoppers show up to grab the deals before they end. During the peak hour of 11 PM ET to midnight, shoppers will spend $11 million per minute.

Adobe’s forecast of $9.4 billion in Cyber Monday sales will likely be at least roughly accurate, but the company won’t have the exact total until the day ends — and it could end up being a little less. The actual Black Friday sales numbers came in just under Adobe’s prediction of $7.5 billion, for example.

A related forecast from Salesforce is estimating slightly smaller Cyber Monday sales, by comparison. It instead predicts Black Friday will deliver $8 billion in U.S. sales and $30 billion worldwide — representing 15% and 12% year-over-year growth, respectively.

 

U.S. online shoppers already spent $50B in November, holiday season on track for $143.7B

Facing a shorter holiday shopping season this year, U.S. retailers started rolling out their Black Friday deals earlier than usual. That move has paid off, according to new e-commerce data shared by Adobe Analytics this morning, which found that U.S. consumers have already spent $50.1 billion online between November 1 and November 26, 2019 — which represents a comparable increase of 15.8 percent year-over-year.

This year, Thanksgiving arrived on November 28, a full week later than it did in 2018 when it came on November 22. That left retailers with 6 fewer days to drive post-Thanksgiving Day sales — a situation it hadn’t been in since 2013, when the shorter time frame led to serious delivery struggles. To salvage the lost shopping days (and to not again find themselves in a similar situation as 2013), retailers simply rolled out their deals a week early.

For example, Amazon kicked off a Black Friday deals week on November 22. Walmart introduced early savings through “Buy Now” deals on Walmart.com, in addition to a pre-Black Friday event that started on Nov. 22. Target integrated Shipt’s same-day shopping service into its app and ran a preview sale, weekend deals, and today, Nov. 27, an early access sale. Other retailers followed suit, as well.

But consumers weren’t even waiting for these Black Friday preview deals to start shopping. According to Adobe Analytics, which tracks online transactions for 80 of the top 100 U.S. retailers, all 26 days in November so far have surpassed $1 billion in online sales. Seven days even passed $2 billion in sales, which made 2019 the first year to see multiple $2 billion days this early in the shopping season.

And as of this morning, $240 million has already been spent online, representing 19.3% growth year-over-year, and putting the day on track to hit $2.9 billion.

 

Based on this data, Adobe believes its earlier forecast of $143.7 billion spent during the full holiday shopping season (Nov.-Dec.) remains accurate. That estimate represents a 14.1% rise from a year ago, according to Adobe. In addition, the three biggest shopping days — Thanksgiving, Black Friday, and Cyber Monday — will also see increases, it says.

Thanksgiving Day sales are forecast to jump 19.7% year-over-year to $4.4 billion; Black Friday is expected to grow by 20.5% to reach $7.5 billion; and Cyber Monday sales are expected to top the charts at $9.4 billion, an increase of 19.1% year-over-year — a new record.

The firm also sees a surge in mobile shopping this year, with 34.3% of all e-commerce sales being made via a smartphone, up 24.2% year-over-year. App Annie’s mobile shopping forecast had also predicted a record numbers of mobile shoppers, with a 25% year-over-year increase in time spent mobile shopping during the weeks of Black Friday and Cyber Monday. The firm said shoppers will spend 2.2 billion hours globally across shopping apps this holiday season.

Other notable trends include a rise in “buy online, pickup in-store” shopping — 61% will take advantage of this, leading to 27% more in sales over last year. Plus email promotions this season have led to 16.5% of all online revenue, up 10% year-over-year. Paid search accounted for 23.7% of sales, while social media led to just 2.8%.

In terms of products, shoppers are buying Apple AirPods, Apple Laptops, Samsung and LG TV’s, Frozen 2 toys, L.O.L Surprise Dolls, NERF toys, Pikmi Pops, Fortnite toys, and games like Pokemon Sword/Shield, Jedi Fallen Order, and Madden 20.

“With the shorter shopping season and retailers starting their promotions earlier, Adobe is seeing holiday discounts already well underway even before Thanksgiving Day,” said Jason Woosley, Vice President of Commerce Product & Platform at Adobe. “For televisions alone, shoppers are already seeing discounts twice as deep as expected with average savings yesterday of 17.5%. Those consumers who grab their smartphone to do some quick online shopping after dinner are likely to find offers that are even better than this time last year,” he added.

 

Walmart Grocery now offers curbside alcohol pickup at 2,000 US stores

The online grocery wars continue. Amazon this week just made grocery delivery free, so Walmart is now touting how its grocery service offers the booze. The retailer today announced a new milestone in terms of giving its customers the ability to shop for alcohol online, noting that more than 2,000 Walmart locations across 29 states will now let you pick up wine and beer along with your other grocery purchases.

The alcohol pickup service has to abide by local laws, which limits its expansion in some cases.

In addition, Walmart says that now more than 200 stores in California and Florida are also offering alcohol delivery. It plans expansions on this front, as well.

Walmart has been slowly ramping up its online alcohol shopping options for some time, in accordance with local, county and state regulations. Its Sam’s Club subsidiary has offered this option, too, by way of Instacart. In the latter case, Sam’s Club has been able to offer delivery of spirits, like Tito’s vodka or those from Sam’s Club’s own “Member’s Mark” brand, among others.

Today, there are a number of ways to shop alcohol online, depending on where you live.

Target-owned Shipt delivers alcohol from some of its supported retailers (including Target) in some markets. Instacart, BJ’s and Amazon (Prime Now) do as well, in select cities, states and stores. And finally, services like Drizly, Saucey, Postmates and Uber Eats can help fill in the gaps, in some markets.

The problem with all these services is that consumers often don’t know which retailers offer alcohol delivery, or which app they should use. If you live in a more permissive state, this may not be as big of a problem — you’ll likely encounter an abundance of choices for same-day alcohol delivery. But in a more conservative state, your options may be more limited — or not available at all. And when consumers have to launch a half dozen apps just to figure out how to order booze online, most people will just give up and drive to the store.

That’s in conflict with Walmart’s larger goal, which is to allow shoppers to take advantage of its online grocery shopping to fully replace the traditional grocery shopping trip to the store. After all, if consumers are driving to the store, they’ll likely choose their local grocer, not necessarily Walmart.

To meet the needs of the online shopper, Walmart Grocery has to offer it all — not just food, but also adult beverages. If successful on speeding this option to market, Walmart’s brand could become known as the place to order online everything you need from the grocery store. And that, in turn, could help boost sales.

Walmart’s alcohol shopping feature works just like shopping for groceries — you search for what you want, add it to the cart, then check out. The only difference is that, upon pickup or delivery, you’ll be required to show your ID so the Walmart team member can verify your age.

Alcohol pickup is available in big states like California, Florida and Texas, and dozens of others, while delivery is limited to the first two states, for the time being.

American Cancer Society’s online store infected with credit card stealing malware

The American Cancer Society’s online store has become the latest victim of credit card stealing malware.

Security researcher Willem de Groot found the malware on the organization’s store website, buried in obfuscated code designed to look like legitimate analytics code. The code was designed to scrape credit card payments from the page, like similar attacks targeting British Airways, Ticketmaster, AeroGarden, and Newegg.

The attackers, known as Magecart, use their stolen credit card numbers to sell on the dark web or use the numbers for committing fraud.

de Groot said in a blog post explaining the breach, shared exclusively with TechCrunch, that the code was designed to send collected credit card numbers to a third-party server, operated by the attacker. The code was malformed, leading to it being inserted twice. When the malicious code was decoded, it revealed the web address of the the hacker’s third-party server.

acs magecart

The card skimming malware on the American Cancer Society’s store’s website. (Image: TechCrunch)

Trend Micro said the domain is known to be used by Magecart. The domain is registered in Moscow, but the website itself loads nothing more than a decoy page.

The code was injected into the online store at some point late last week. de Groot informed the organization of the incident as soon as he found the code on Thursday by calling its anti-fraud hotline, but the code was not immediately removed. After we reached out Friday, the code was no longer present.

American Cancer Society spokesperson Kathi Dinicola did not return requests for comment.

It’s not known how many users were affected, but anyone who entered information through the American Cancer Society late last week should contact their payments provider.

Toys R Us relaunches its website where online sales are powered by Target

Toys R Us is back online, thanks to a new deal with Target. Tru Kids, the parent company that acquired the defunct toy chain following its bankruptcy, has announced the relaunch of the ToysRUs.com website as it begins the process of opening its retail stores across the U.S. As a part of its comeback strategy, the Toys R Us website’s product pages will redirect to Target.com when consumers click the “buy” button to make an online purchase.

The retailers didn’t discuss the terms of the deal, but a revenue-sharing agreement is clearly involved in a scenario like this, given the mutual benefits. Toys R Us would be able to quickly establish cash flow from the still top-ranked, well-established domain name toysrus.com, while Target could get an influx of new sales from shoppers who visited ToysRUs.com, unaware of the toy chain’s bankruptcy and relaunch.

In addition to redirecting online shoppers to Target, the new website also features articles and videos about the latest toy trends and hot brands, plus in-depth product reviews, hot toy lists, and other brand experiences. These will be available on the ToysRUs website itself. Only when a customer is ready to make a purchase will they be sent over to Target for checkout.

The site’s “Buy” button is also clearly labeled so there’s no confusion at checkout. In Target’s red-and-white brand colors, it reads “buy now at [target].com” where the word “Target” is replaced with the Target logo icon.

Target shoppers sent to ToysRUs get the same benefits they would if shopping directly — meaning, they can place orders for delivery, curbside or store order pickup, and can earn loyalty points with Target Circle, or get 5% by paying with a Target REDcard.

Screen Shot 2019 10 09 at 10.51.19 AM

The new partnership between the retailers isn’t only focused on redirecting consumers’ traditional e-commerce product sales, however.

Target says it will also fulfill online sales when Toys R Us opens up its first experiential retail stores later this fall in Houston, Texas and Paramus, New Jersey.

Tru Kids had previously announced a deal with tech startup b8ta to create a modernized toy store experience featuring things like STEAM workshops, a treehouse for kids to play in, theaters for movies and games, and a way for brands to showcase their products in a more interactive environment.

At these stores, guests who want to purchase items that aren’t available in the store itself will be able to place their order with a store associate that gets fulfilled through Target.com.

“Target’s leadership in toys, digital and fulfillment are an unbeatable platform for ToysRUs to reconnect with their fans while we introduce them to the ease and convenience of shopping at Target,” said Nikhil Nayar, senior vice president of merchandising at Target, in a statement. “By applying our capabilities in a new way with ToysRUs, we can serve even more toy shoppers, drive new growth, and build on our toy leadership,” Nayar added.

The new deal with Toys R Us isn’t the only significant toy-related partnership Target has made in recent weeks. At the end of August, the retailer announced an agreement with Disney that sees it opening mini Disney stores within its retail stores, where shoppers can buy toys, apparel, collectibles, home items, and more. Twenty-five Disney “shop-in-shops” are open now and dozens more are planned for 2020.

“Our U.S. strategy is to bring back the ToysRUs brand in a modern way through a strong experiential and content-rich omnichannel concept,” Tru Kids CEO Richard Barry, a former Toys R Us exec, in a statement about the Target partnership.

“The foundation of that strategy requires the help of a retail industry leader and Target is the ideal retailer to support a new ToysRUs shopping experience, which is designed to provide families with endless ways to discover, play and enjoy toys. Target will help us deliver on that experience with its toy assortment, digital strength and ability to deliver orders to shoppers in a matter of hours,” he said.

 

Lookiero closes $19M led by MMC Ventures to be the Stitch Fix for Europe

Lookiero, the online personal shopping service for clothes and accessories, has closed a $19 million funding round led by London-based VC MMC Ventures with support from existing investor All Iron Ventures, and new investors Bonsai Partners, 10x and Santander Smart. The company will use the backing to expand in its main markets of Spain, France and the UK. In June last year it closed a funding round of €4 million led by All Iron Ventures.

The startup applies algorithms to a database of personal stylists and customer profiles to thus provide a personalized online shopping experience to its customers. It then delivers a selection of five pieces of clothing or accessories curated by a personal shopper to fit the customer’s individual size, style, and preferences. Customers then decide which items to keep or return (at no additional cost), allowing Lookiero to learn more about the customer’s tase before starting the whole process again.

By generating look-a-like profiles and analyzing previous customer interactions with each item, Lookiero says it can predict how likely a user is going to keep a certain item from a range of more than 150 European brands from a warehousing system that will ship more than 3 million items of clothing this year to seven European countries.

It’s not unlike the well—worn Birchbox model. Lookiero’s main competitor is Stitch Fix (US), which has upwards of $1.5bn in annual revenues and IPO’d November 2017.

Founded in 2015 by Spanish entrepreneur Oier Urrutia, the company says it now has over 1 million registered users and has grown revenue by over 200% from 2017 to 2018.

In a statement Urrutia said: “This investment round provides us with the necessary capital to further increase the accuracy of our technology, which is really exciting. It will allow us to offer the best possible experience for our users and to continue expanding across Europe.”

Simon Menashy, Partner, MMC Ventures, said: “The migration of fashion brands online has improved consumers’ access to clothing, and there is now an almost overwhelming amount of choice. At the same time, it can still be really hard to find exactly what is right for you, especially with high street retail stores in decline. Lookiero provides the best of both worlds, giving every customer a hand-picked selection from their personal stylist.”

Ander Michelena, co-founding partner of All Iron Ventures, said: “Even if what Oier and his team have achieved to date is remarkable, we believe that Lookiero still has great potential to continue expanding internationally and to become a player of reference in a market segment where there is still a lot to do in terms of innovation and user satisfaction”.

Walmart launches two new credit cards offering 5% back on digital purchases

Walmart is partnering with Capital One to launch a new credit card program, which rolls on September 24, and includes both co-branded and private-label cards. The former, the Capital One Walmart Mastercard, includes 5% back on purchases made on Walmart.com or paid for in-store using Walmart Pay (the latter for the first 12 months.) The private label card, the Walmart Rewards Card, will offer those same perks, but is limited to being used only in Walmart stores and on Walmart.com.

After the 12-month introductory period, the co-branded Mastercard will drop to 2% on Walmart purchases in stores, instead of 5%. However, it will continue to offer 5% on Walmart.com purchases, including Walmart Grocery.

It also offers 2% back on restaurants and travel and 1% back everywhere else. The card doesn’t include any annual fee or foreign transaction feeds, and its rewards can be used any time, Walmart says.

Customers can apply for the new card via Walmart’s website or app, or through CapitalOne.com. The application itself can be filled out using a mobile device and, once approved, customers gain access to the card immediately. They can also load the card into Walmart Pay or into the Walmart app before the physical card arrives in the mail — similar to how Apple’s new Apple Card works.

Through Capital One, customers will receive purchase notifications, security alerts, 0% fraud liability, and the ability to lock/unlock a lost or stolen card from the Capital One app.

The new Walmart store card, meanwhile, also offers 5% back on purchases on Walmart.com, in Walmart app, and on Walmart Pay in-store purchases during the introductory period. It then offers 2% back on Walmart purchases afterward. It also earns 2% back at Walmart Fuel Stations.

Current Walmart cardholders will be converted to the Capital One Walmart Rewards Mastercard or the Walmart Rewards Card, starting October 11, with physical cards arriving in November. They’ll also earn 5% back through Walmart Pay through October 14, 2020.

Walmart’s prior card, from Synchrony Bank, offered smaller rewards, noted Sara Rathner, credit cards expert at NerdWallet, in a statement published this morning.

“The Capital One Walmart Rewards Mastercard is definitely helping to cement 5% back as the gold standard among retail cards. We already see this rewards rate with the Amazon Prime Rewards Visa card and the Target REDcard. The previous Walmart card issued by Synchrony Bank only offered 3% back on Walmart.com and a paltry 1% back in-store, so the new card is a huge step up,” she said.

Credit card partnerships are an area of importance to major retailers, including Walmart’s chief rival, Amazon. Its credit card program includes a variety of options, including store cards, travel cards, prepaid cards, no annual fee cards, reward points cards and more. And of course both retailers today are, to some extent, challenged by Apple, which just entered the credit card space, too.

Branded store cards not only help to increase customer loyalty, they also drive more purchases, reduce credit card processing fees, create additional profit in the form of interest, and generate records of customer purchases that can be used for targeted advertising.

“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,” said Daniel Eckert, senior vice president, Walmart services and digital acceleration, in a statement. “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,” he said.