As it continues to enhance operations that allow the company to offer customers ways to manage money, Walmart has announced the creation of a new fintech startup enterprise designed to develop and offer modern, innovative and affordable financial solutions.
The new venture will add to the financial services Walmart offers itself and through partners including Walmart Credit Card, Walmart Money Card, check cashing, money transfers and installment financing. Contacted by HomeWorld Business, a Walmart spokesperson said specific details about what financial services the partnership would offer are not yet available. However, the spokesperson did relate that plans call for the startup to create a suite of digitally enabled financial products tailored to the unique needs of Walmart customers and associates.
“The list of exact projects and timeline is still being developed,” the spokesperson said.
The new company emerges from a strategic partnership with fintech investment firm Ribbit Capital. The venture will combine Walmart’s retail knowledge and scale with Ribbit’s fintech expertise to deliver technology-driven financial experiences. Walmart will be the company’s majority owner. Its board will include John Furner, president and CEO, Walmart U.S., Brett Biggs, evp and CFO, Walmart, and Meyer Malka, managing partner of Ribbit Capital.
The new company intends to add independent industry experts to the board and to build a management team of experienced fintech leaders. Growth may come through additional partnership arrangements and acquisitions with leading fintech companies, Walmart noted.
Founded in 2012, Ribbit invests in entrepreneurs and businesses that are shaking up financial services, the retailer added. Its current portfolio includes no-fee mobile investment platform Robinhood, consumer technology platform Credit Karma and Affirm, which provides payment options for customers.
Walmart may be taking its global experience to heart as it builds financial services. Although retailers in the United States today don’t often offer a broad array of financial services, Tesco in the United Kingdom provides customers with a range of services from savings accounts to mortgages and insurance.
“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,” John Furner, president and CEO, Walmart U.S., said in announcing the partnership. “And they’ve made it clear they want more from us in the financial services arena. 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.”