From CNBC: 2024-04-23 11:51:01

Walmart’s fintech startup One is now offering buy now, pay later loans for big-ticket items at over 4,600 U.S. stores, putting it in direct competition with Affirm. This move signals a potential battle among various financial firms aiming to become a one-stop platform for saving, spending, and borrowing.

One’s push into lending is part of its goal to become a financial superapp, challenging traditional banks and establishing itself as a major player in the industry. Walmart’s partnership with One may lead to the phasing out of existing partners like Affirm, Capital One, and more, as the retailer aims to unify its financial services under one brand.

Walmart’s foray into fintech with One follows the retailer’s failed past attempts to enter banking directly. With a joint venture with Ribbit Capital, One is positioned to disrupt the industry by offering BNPL loans and debit accounts. Walmart’s long-term strategy involves growing revenue sources beyond retail through financial services and other ventures like the recent acquisition of TV maker Vizio for $2.3 billion.

One’s no-fee approach aims to serve low- and middle-income Americans who are underserved financially. With potential revenue estimates in the billions, One could tackle areas such as debit cards, lending, investing, and more. The fintech startup, with providing lending licenses in nearly all U.S. states, aims to surpass competitors like Cash App, PayPal, and Chime with its strong customer base and diverse financial offerings.

Read more: Walmart-backed fintech One introduces buy now, pay later