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One introduces BNPL service to US stores

Wednesday 24 April 2024 13:59 CET | News

US-based One, Walmart’s majority-owned fintech startup, has launched Buy Now, Pay Later (BNPL) loans for high-value items at 4,6000 of the retailer’s stores. 

In a bid to support its commitment to become a financial super app, as well as a one-stop shop for saving, spending, and borrowing money, One introduced BNPL services for nearly 4,600 of Walmart’s US stores. The move allows One to join Affirm, a fintech providing similar services, as one of the options that Walmart’s customers receive when shopping at Walmart’s locations. As detailed by CNBC, advertisements for both One and Affirm were present at stores in the retail chain’s electronic aisles. At the time of the announcement, Walmart and One declined to comment on the matter.

US-based One, Walmart’s majority-owned fintech startup, has launched Buy Now, Pay Later (BNPL) loans for high-value items at 4,6000 of the retailer’s stores.

Within its offering, One allows Walmart’s customers to purchase electronics, jewellery, power tools, and automotive accessories, while groceries, alcohol, and weapons are not eligible for the loans. The fintech’s move follows the rise in popularity and use of BNPL services, with consumers leveraging the solution for acquiring everyday items, as well as for larger purchases. By supporting One, Walmart assists its broader objectives to create additional revenue sources beyond its retail stores in segments such as finance and health care, with its newer businesses having higher profit margins than retail and being part of its growth plans. CNBC mentioned that there are no additional signs that One is taking any further steps into lending beyond instalment loans.

Walmart’s previous moves

Prior to the current announcement, more specifically at the end of March 2024, a US judge ruled that Walmart was able to end its credit card collaboration with Capital One early, considering that the bank failed to offer the required level of client solutions. The US district judge mentioned the terms of a 2019 agreement that made Capital One the exclusive issuer of Walmart-branded credit cards in the US. Reportedly, this dictated that Capital One’s repeated customer service failures allowed Walmart to end their collaboration earlier than anticipated and initially mentioned.

At that time, Capital One disagreed with the overall decision and was evaluating its right to appeal. On the other hand, Walmart commented and stated that it was pleased with the decision. Moreover, the retailer accused Capital One of being slow in the process of posting many transactions and payments to cardholders’ accounts, besides failing to promptly replace many of the lost cards. Walmart also underlined that it could end its partnership if Capital One failed to meet any of the 13 critical client service standards that the retailer imposed.

Source: Link


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Keywords: BNPL, payment methods, product launch, mobile payments, online payments
Categories: Payments & Commerce
Companies: ONE, Walmart
Countries: United States
This article is part of category

Payments & Commerce

ONE

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Walmart

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