Walmart has stuck another toe into the world of finance with the creation of a new fintech startup offering a range of financial services to its customers, many of whom have no banking relationship.
It’s collaborating in the venture with Ribbit Capital, the company behind investment platform Robinhood and the consumer technology platform Credit Karma.
Walmart says the venture will combine Walmart’s retail knowledge and scale with Ribbit’s fintech expertise to deliver tech-driven financial experiences tailored to Walmart’s customers and associates.
“For years, millions of customers have put their trust in Walmart 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, CEO of Walmart U.S.
Left unsaid is what the new venture will be called and when it will launch. Walmart did say that it would hold a majority stake in the new firm. Walmart also did not disclose what types of services the new company would offer. However, typical fintech companies might offer some or all of these services:
Ribbit Capital’s Robinhood has revolutionized online trading. A favorite among millennial investors, Robinhood grew quickly because it doesn’t charge commissions on transactions, a move that forced other online brokers to drop end their commissions as well.
Walmart said its existing financial services remain in place. They include Walmart Credit Card, Walmart Money Card, check cashing, money transfers, and installment financing.
This isn’t Walmart’s first foray into the world of technology. Last year it threw its hat in the ring as a potential buyer of TikTok when the Trump administration said it would force a sale by the company’s Chinese owner.