Walmart Putting Money on Financial Services
America’s largest retailer is delving further into the financial services arena.
Walmart announced Jan. 11 the creation of a new fintech startup designed “to develop and offer modern, innovative and affordable financial solutions.” The new company is a strategic partnership with fintech investment firm Ribbit Capital. The venture will bring together Walmart’s retail knowledge and scale with Ribbit’s fintech expertise to deliver tech-driven financial experiences tailored to Walmart’s customers and associates, according to Bentonville, Ark.-based Walmart.
“For years, millions of customers have put their trust in Walmart to not only save them money when they shop with us but help them manage their financial needs. And they’ve made it clear they want more from us in the financial services arena,” said John Furner, president and CEO of Walmart U.S. “We’re thrilled to work with Ribbit Capital in a new venture to help us deliver innovative and needed options to our customers and associates — with speed and at scale.”
The company will be majority-owned by Walmart. Its board will include Furner; Brett Biggs, executive vice president and chief financial officer for Walmart; and Meyer Malka, managing partner of Ribbit Capital. The company plans to add independent industry experts to the board and to build a management team of experienced fintech leaders. It anticipates that growth may come through partnerships and acquisitions with leading fintech companies.
“Walmart has a relationship with millions of customers and associates built on trust, security and integrity,” Malka said.
Walmart said it will continue to serve customers through its existing financial services and partnerships with a number of third parties, including Walmart Credit Card, Walmart Money Card, check cashing, money transfers, installment financing and more.