An Walmart-backed startup seeks to compete against buy now, pay it later companies.

One Venture is planning to launch its own version, according to a source familiar.

One, which is majority owned by Walmart, plans to launch a service that can be used at Walmart’s stores and website as well as other retailers. A more challenging economic environment and inflation-stricken consumers were two factors that motivated the effort.

Shares in buy-now, pay-later firm Affirm declined on Friday. Walmart declined comment.

One is breaking into the expanding payment services category . Monthly retail sales numbers continue rising. However, some Americans show signs and symptoms of strain from inflation that has driven up food, housing, etc. prices. The consumers could be interested in using other payment methods to pay for their purchases because of the stretched wallets. Customers can choose to buy now and pay it off later by making fixed monthly payments as well as interest.

Walmart CEO Doug McMillon spoke out about wealthy customers feeling squeezed by inflation. Around 75% of Walmart’s gains in grocery market share have come from households making more than $100,000 over the past two quarters.

McMillon claimed that customers are stressed during a CNBC interview.

“We have some customers who are more financially conscious that have been under inflation pressure now for months,” he said to CNBC’s “SquawkBox.” “That sustained pressure is one of the categories, I believe, is something customers are having with Christmas.”

The Information reported the first news about Walmart’s investment in buy now, then pay later.

Walmart, the nation’s largest private employer, and its largest grocer, offers financial services in many of its stores. The money center allows customers to access banking-related services like printing checks, sending money, or loading debit cards. Many of these services are designed for families who have low incomes, have no relationships with banks or don’t have the credit history required to be eligible for credit cards.

Walmart went one step further in 2017 by creating and backing an fintech startup together with Ribbit Capital one investment firm behind Robinhood. Walmart owns the largest stake in the fintech startup. Its board includes John Furner (Walmart U.S. CEO) and John David Rainey (chief financial officer). Rainey, Walmart’s new chief financial officer, has just joined the board. He was previously CFO at PayPal.

The startup has grown significantly since Walmart started it and supported it in the early 2021. It purchased two other fintech startups for an undisclosed amount in early 2019. It was given the name One, and it aims to be an app that consumers can use to manage their money.

Omer Ismail , is the leader of one. He was previously CEO of Goldman Sachs ‘ consumer banking. It also includes Goldman Sachs veterans.

Affirm and PayPal have all launched their own versions of Buy Now, Pay Later. Apple has also announced plans for its own buy-now, pay-later option, Apple Pay Later.

Affirm offers customers a buy now, and pay later option at Walmart. The retailer ended its layaway program in time for the holiday season and offered buy now, pay later financing.

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