Published: Thu, January 14, 2021
Economy | By

Walmart to Launch New Fintech with Ribbit Capital Partnership

Walmart to Launch New Fintech with Ribbit Capital Partnership

Walmart, the nation's largest retailer, is creating a new fintech startup to offer affordable financial solutions aimed at its customers and employees.

Walmart pulled on a hoody and started using the word "ideate" earlier in the week, because the retailer announced it's launching its very own fintech startup.

In this context, John Furner, CEO, and President, Walmart U.S., mentioned in a comment that the customers have demanded more from the retail giant in terms of financial services. "And they've made it clear they want more from us in the financial services arena", said John Furner, President and CEO.

Walmart has thrown its hat into the fintech - technology-focused financial services - ring with a startup in a partnership with Ribbit Capital. Walmart said it will also name independent industry experts to the board and may acquire or partner with other fintech companies. Growth may come through additional partnership arrangements and acquisitions with leading fintech companies, Walmart noted. Meanwhile, a blank-check company set up by Ribbit, surged.

Walmart already offers various financial products and services for its customers - the company cited Walmart Credit Card, and its installment financing, among other examples. Its portfolio includes Robinhood, a fee-free investing start-up; and Credit Karma, a company that offers consumer-friendly tools such as free credit score checks.

"Walmart has a relationship with millions of customers and associates built on trust, security and integrity", said Meyer Malka, Managing Partner, Ribbit Capital.

"When we combine our deep knowledge of technology-driven financial businesses and our ability to move with speed with Walmart's mission and reach, we can create and deliver financial offerings that are second to none", Malka said.

Walmart's head-to-head competition with Inc. means it is increasingly growing beyond retail.

If sources are to be believed, despite the disruptions brought in by the Coronavirus pandemic, Walmart is enjoying a comfortable position in the market, with recorded sales of United States dollars 134.7 billion in November, up by over 5% year-over-year. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity.

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