Reports: Walmart to Enter Buy Now, Pay Later Payment Space
A Walmart-backed fintech startup called One plans to launch a buy now, pay later (BNPL) payment service as soon as next year, according to three people familiar with the matter. The news could put the world’s largest retailer in competition with other fintech lenders. One, which Walmart hopes will morph into an all-in-one app where consumers can manage their money, plans to launch a BNPL service that shoppers could use on Walmart’s website and in its stores, as well as at other retailers.
According to another report, from CNBC, One is breaking into the growing payment services category as monthly retail sales numbers continue to rise, but many Americans still show signs of strain from inflation driving up the prices of food, housing and more. Those stretched wallets could fuel consumers’ interest in paying for purchases in other ways, including BNPL.
Total Retail's Take: This isn't the first time Walmart has offered financial services to its customers. The country’s largest private employer, for example, has offered financial services at many of its stores for many years. It also has a money center where customers can go for banking-related services, such as printing checks, sending or receiving money, or loading pre-paid debit cards. In addition, Walmart created and backed a fintech startup with Ribbit Capital, which led to the acquisition of One and another fintech startup called Even, which provides an app designed to help consumers' plan ahead for upcoming bills and organizes their money.
It also makes sense that Walmart is joining the BNPL wave, as it has become a very crowded space. Companies such as Affirm, PayPal, Klarna, and AfterPay all offer their own versions of a BNPL service, and Apple also recently announced plans to launch its own BNPL option, Apple Pay Later. Walmart already offers a BNPL option to customers through Affirm.