Walmart, the nation’s largest retailer, is creating a new fintech startup to offer affordable financial solutions aimed at its customers and employees. The new company is a strategic partnership with Palo Alto investment firm Ribbit Capital, which has backed Affirm and Robinhood.
The unnamed venture will bring together Walmart’s retail power and scale with Ribbit’s expertise to create tech-driven financial products tailored to Walmart’s customers and employees.
“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,” John Furner, president and CEO, Walmart U.S. said. “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 U.S.; Brett Biggs, executive vice president and chief financial officer, 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.
Ribbit Capital was founded in 2012 and its mandate is to invest in the best entrepreneurs and businesses disrupting financial services. Its current portfolio includes no-fee mobile investment platform Robinhood; consumer technology platform Credit Karma; and Affirm, which provides innovative payment options for customers.
“Walmart has a relationship with millions of customers and associates built on trust, security and integrity,” Meyer Malka, managing partner, Ribbit Capital, said. “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.”
Walmart 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.