Walmart Announces Creation of New Fintech Startup

Though companies did not reveal much about the new venture, it seems to be targeting "Walmart's customers and associates". Walmart will be the company's majority owner. 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. The startup, which has yet to be named, will add more board members, and hire a management team.

The Bentonville-based retailer said Monday it is now a start-up partner with Ribbit Capital, a global investment firm founded in 2012.

What's more, the agency found that roughly 16% of people are considered "underbanked", meaning that they have a bank account but have also used an alternative financial service product like a money order, pawn shop loan, payday loan or tax refund advance.

Walmart - which already offfers a number of financial products, including credit cards, cheque cashing, money transfers and installment financing - has yet to give any specific details on its product plans, although partnerships with other fintechs and acquisitions are written into the business blueprint. Its portfolio includes Robinhood, a fee-free investing start-up; and Credit Karma, a company that offers consumer-friendly tools such as free credit score checks.

"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 Inc. announced a fintech startup as the world's largest retailer continues to expand beyond its core market.

With more than 5,000 stores globally, Walmart interacts with millions of customers each year - including some who don't have a relationship with a bank or a financial advisor. With fiscal year 2020 revenue of $524 billion, Walmart employs over 2.2 million associates worldwide.