Walmart-Backed Fintech One Introduces Buy Now, Pay Later Feature Amid Plans for Expanded Lending Services

Walmart’s Fintech Play: One vs Affirm and Beyond

Walmart’s fintech startup, One, is making a play for a bigger slice of the retail giant’s financial services pie. One recently launched buy now, pay later (BNPL) loans, directly challenging Affirm, Walmart’s current BNPL partner. This move signals a potential shift in Walmart’s financial strategy and could reshape the landscape for financial services within the retail sector.

Here’s a breakdown of the key points:

One vs Affirm: One’s BNPL offering competes directly with Affirm, which has been Walmart’s exclusive partner since 2019. This could lead to a battle for dominance within Walmart stores and online platforms.
Walmart’s Fintech Ambitions: One aspires to become a financial superapp, offering saving, spending, and borrowing functionalities all in one place. This could threaten existing partnerships with companies like Capital One and disrupt traditional financial players.
Focus on Underserved Consumers: One aims to cater to low- and middle-income customers, a demographic Walmart understands well. By offering fee-free services and potentially better interest rates, One could capture a significant market share.
Walmart’s Leverage: Walmart’s vast customer base and employee network give One a significant advantage. Early wage access for employees and exclusive in-store promotions are just a few ways Walmart can leverage its reach to grow One.
Future of Credit Cards: Walmart’s recent legal victory over Capital One might pave the way for One to manage the retailer’s co-branded credit cards in the future.

Overall, Walmart’s push into financial services with One is a bold move. The success of One will depend on its ability to:

Offer competitive rates and features compared to established players.
Convince customers to switch from existing financial service providers.
Maintain a strong partnership with Walmart and leverage its vast resources.

This development is likely to be closely watched by investors and industry experts, as it has the potential to redefine how financial services are offered within the retail sector.