- ORIGINAL NEWS
Walmart-backed fintech One introduces buy now, pay later as it prepares bigger push into lending
- SUMMARY
Walmart’s fintech subsidiary, One, has launched a new service: buy now, pay later (BNPL) loans for big-ticket items at Walmart stores.
This move pits One directly against Affirm, a long-time BNPL provider for Walmart customers.
One’s expansion at Walmart threatens established partnerships with Affirm and other third-party lenders.
Walmart’s goal is likely to consolidate financial services under One’s umbrella, offering everything from credit cards to loans within its own platform.
One’s BNPL loans are available for purchases starting at $100 and feature annual interest rates ranging from 10% to 36%.
Eligible items include electronics, jewelry, power tools, and automotive accessories.
Industry experts anticipate that One’s growth could potentially push Affirm, Capital One, and others out of some lucrative Walmart partnerships.
Walmart’s broader strategy involves diversifying revenue streams beyond retail, similar to Amazon’s ventures into cloud computing and streaming.
One’s no-fee approach and Walmart’s extensive customer base give it a competitive edge.
The startup also plans to offer additional lending products, including credit building and credit score monitoring services.
Walmart’s move towards financial independence through One is a defensive measure against fintech rivals like Block’s Cash App, PayPal, and Chime.
One leverages Walmart’s vast customer base and offers incentives like higher interest rates to keep customers within the Walmart ecosystem.
- NEWS SENTIMENT CHECK
- Overall sentiment:
positive
Positive
“Walmart’s majority-owned fintech startup One has begun offering buy now, pay later loans for big-ticket items at some of the retailer’s more than 4,600 U.S. stores, CNBC has learned.”
“Since it burst onto the scene in 2021, luring Goldman Sachs veteran Omer Ismail as CEO, the fintech startup has intrigued and threatened a financial landscape dominated by banks — and poached talent from more established lenders and payments firms.”
Negative
“After its failed early attempts in banking, Walmart pursued a partnership strategy, teaming up with a constellation of providers, including Capital One, Synchrony, MoneyGram, Green Dot, and more recently, Affirm.”
“In fact, in legal filings Capital One itself alleged that Walmart’s rationale was less about servicing complaints and more about moving transactions to a company it owns.”