Walmart News

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:

• Banking.

• Insurance.

• Loans.

• Personal finance.

• Electronic payments.

• Loans.

• Venture capital.

• Wealth Management.

Revolutionary partner

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.

Walmart is looking to up its grocery delivery game by opening the possibility of consumers being able to get their orders at any time of the day or night. 

In a blog post, the company says it will be conducting a pilot this spring that will allow customers in Arkansas to get fresh groceries delivered to their doors in a temperature-controlled smart box. The boxes are made by HomeValet, and they will reportedly be able to hold frozen, refrigerated, and pantry items.

“Beginning this spring, participating customers in Bentonville, Arkansas, will be able to receive deliveries from their local Walmart directly into a temperature-controlled HomeValet-powered smart box placed outside their home. This gives customers the ability to receive secure, contactless deliveries with the peace of mind knowing their grocery items will stay fresh,” said Tom Ward, Walmart U.S.’ senior vice president of Customer Product.

“The prospect of this technology is intriguing, both for customers and for Walmart’s last-mile delivery efforts. For customers, they don’t need to plan their day around when their grocery delivery will be made. For Walmart, it presents an opportunity to deliver items 24 hours a day, seven days a week,” Ward said. 

Ward stated that Walmart probably won’t be delivering groceries on a 24/7 basis anytime in the near future, but he admitted that the idea “certainly has a nice ring to it.”

“If there’s one thing we know about our customers, it’s that they’re busier than ever. Our pilot with HomeValet is one of many solutions we’re testing that can make their days more manageable,” Ward said.

Walmart has announced that it’s giving consumers the option of returning orders without having to leave their home. In a blog post on Monday, the company said it’s teamed up with FedEx for a new service designed to make returning items a “hassle-free” experience. 

“Now, customers can schedule a return through our new service, Carrier Pickup by FedEx, which is an incredibly convenient way to make that unwanted gift *magically* disappear,” Walmart said. “Even more magical, this new return option is not only super-easy but also free, and here to stay beyond the holiday season.” 

To use Carrier Pickup by FedEx, customers can print out a shipping label from Walmart’s website, then schedule a time for FedEx to pick up the unwanted item. 

The service is free for items shipped and sold via Walmart.com. The retailer noted that the service is available to “all customers where FedEx provides Small Parcel Pickup service.” Walmart customers can still choose to drop off their returns at FedEx locations instead of using the pickup service. 

Changes to in-store return process 

Walmart said it’s made several changes to its normal in-store returns process in order to keep customers safe and maintain social distancing during the pandemic. 

Customers can start their return online via the Walmart app or website to cut down on time spent in line. At many stores, Walmart said it will open alternative return locations to help keep customers distanced from others in the store. 

“Top that off with more good news for customers: No matter how customers choose to return the item, we’ve worked hard to speed up the time frame for which customers get their money back,” Walmart added. “For many online returns, refunds will be credited to customers’ payment account sometimes as soon as the next day, and same day for in-store returns.”