FinTech: Walmart Will Partner With Ribbit Capital To Create New Fintech

January 12, 2021 | FinTech, News, Venture Capital
https://dailyalts.com/wp-content/uploads/2021/01/1024px-Walmart_Store_sign.jpg

The new venture will deliver tech-driven financial experiences tailored to Walmart’s customers and associates.

Walmart (NYSE: WMT) announced Monday its launch of a new fintech startup to be created jointly with Ribbit Capital, the investment firm whose mantra is innovation in financial services. Ribbit is a backer of renowned fintechs such as Robinhood, Credit Karma, and Affirm. (BusinessWire)

Walmart

The company has grown over 50 years from a single discount store into the biggest retailer in the world. It operates 11,400 stores under 55 banners in 26 countries and eCommerce websites.

The chain employs 2.2 million associates who serve over 265 million customers and members every week.

The company reported revenues of $524 billion in its fiscal year 2020.

It already offers payment methods such as the Capital One Walmart Rewards Mastercard credit card, reloadable debit cards (Walmart MoneyCard, Bluebird, Netspend, American Express Serve, Green Dot Visa, GoBank, and MyVanilla), Walmart Pay (a touch-free payment method using a phone and its stored cards) and an Affirm “Buy-Now-Pay-Later” scheme for paying in installments. It also offers check cashing and money orders.

The strategic partnership with Ribbit will, however, deliver tech-driven financial experiences tailored to the retail chain’s customers and associates.

Walmart and financial services

“For years, millions of customers have put their trust in the company 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,” said John Furner, President and CEO.

Many of the company’s customers may not have access to banking services such as savings, checking, or money market accounts. Even those that do have a bank account may be underbanked – they use financial services such as money orders, for instance. These customers are financially vulnerable, and often need to resort to expensive financial options such as pawnbrokers and payday loans.

The new fintech may address these problems.

“Walmart has a relationship with millions of customers and associates built on trust, security, and integrity,” said Meyer Malka, Managing Partner, Ribbit Capital, in a statement. “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.”

Startups such as Credit Karma and Affirm, both fintechs backed by Ribbit, provide innovative payment options to customers.

Structure

Walmart will own a majority of the new fintech company. 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.

It plans to achieve growth through partnerships with, and acquisitions of leading fintechs.

Related Story:   The AI That Powers Walmart’s Express Delivery

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2021/01/20799023_10155344538262247_3441449533256082001_n.png
FinTech: Goldman Sachs’ Twin Moves To Advance Consumer Banking Ambitions
January 15, 2021     FinTech, News

Goldman Sachs (NYSE: GS) is continuing moves to boost its presence in consumer banking. The Wall Street giant is already the issuer for Apple Cards. Today it announced a multi-year…

https://dailyalts.com/wp-content/uploads/2021/01/landscape-3639879_640.jpg
Alternative Investments/ESG: Invesco Launches Five Global Fund-of-Funds As Its Summit Responsible Range

Invesco’s new Summit Responsible range of five global multi-asset funds aims to provide investors a cost-effective exposure to ESG considerations with specific risk levels. The funds’ assets will 100% be…

https://dailyalts.com/wp-content/uploads/2021/01/tiger-1022865_640.jpg
Venture Capital: Tiger Global Is Raising Its Thirteenth $3.75B Venture Fund
January 15, 2021     News, Venture Capital

According to an exclusive report by TechCrunch, Tiger Global Management is raising its thirteenth venture fund. The $3.75 billion fund is named Tiger Private Investment Partners XIV, however. TechCrunch cited…

https://dailyalts.com/wp-content/uploads/2021/01/screenshot-grayscale.co-2021.01.15-16_23_22.png
Digital Assets: Grayscale’s Blockbuster Q4 (And 2020) Stats Reflect Rising Adoption of Cryptos
January 15, 2021     Digital Assets, News, Special Reports

Grayscale Investments’ Q4 report provides valuable insight into the rising adoption of digital assets.