Supermarket giant Walmart has announced the creation of a fintech start-up to offer a series of affordable financial solutions to its customers.
The venture is in collaboration with fintech investment firm Ribbit Capital. Walmart aims to combine its retail knowledge and scale with Ribbit’s fintech expertise in a bid to deliver personalised, tech driven financial experiences.
John Furner, president and CEO, Walmart US, said: “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.
“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 John Furner, President and CEO, Walmart US; Brett Biggs, Executive Vice President and Chief Financial Officer, Walmart; and Meyer Malka, Managing Partner of Ribbit Capital.
In addition, the company has plans to add independent industry experts to the board and build a management team of experienced fintech leaders.
“Deep knowledge of technology-driven financial businesses”
Meyer Malka, Managing Partner at Ribbit Capital, said: “Walmart has a relationship with millions of customers and associates built on trust, security and integrity.
“When we combine our deep knowledge of technology-driven financial businesses and our ability to move with speed with Walmart’s mission and reach, we can create and deliver financial offerings that are second to none.”
Ribbit Capital’s current portfolio includes no-fee mobile investment platform Robinhood, Credit Karma and Affirm.
Walmart has said it will continue to serve customers through its existing financial services and partnerships with a number of third parties. These include the Walmart Credit Card, the Walmart Money card, check cashing, money transfers, and instalment financing.