What if Walmartin (NYSE: WMT) the more recent plans are realized, the retail giant will also become a presence in the hot fintech industry. The company announced Monday that it has created a start-up company to, in its words, “develop and offer modern, innovative and affordable financial solutions.”
Walmart is doing this in collaboration with Ribbit Capital, a venture capital firm that is perhaps best known for supporting Robinhood, the popular next-generation online securities broker. The new company, whose name has not been released, will have Walmart as the majority shareholder. Walmart CEO John Furner will serve on the board, as will Ribbit managing partner Meyer Malka.
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Furner said, “For years, millions of customers have placed their trust in Walmart not only to save money when they shop with us, but also to help them manage their financial needs. And they have made it clear that they want more of us in the financial arena. services. “
Walmart already offers several financial products and services to its customers – the company cited the Walmart Credit Card, the installment plan, among other examples. He said he would continue to offer them, which implies that the new company’s operations will not affect them.
Walmart is an experienced operator who knows an interesting business opportunity when he sees it. Given that, we can expect to become a notable fintech player with the new company, if not necessarily one of the most powerful names in the segment.
That said, Walmart left the door open for expansion, saying it may be willing to step up efforts with acquisitions and partnerships.