A new fintech start-up will be launched by the largest retailer of the world Walmart in partnership with Ribbit Capital which is one of the major investors in Robinhood.
No details about the name of the new venture or the time when it would be launched were provided by the retailer. The company however said that the main task mandate for the startup will be to create unique and affordable financial products for the employees and customers of Walmart.
The news pushed the shares of Walmart by 1.5 per cent.
A number of executives of the company including Chief Financial Officer Brett Biggs and Walmart U.S. CEO John Furner will be at the board of the new fintech start-up in which Walmart will have a majority stake. Independent industry experts will also be recruited to the board of the company, Walmart said, and added that other fintech companies may be included in the venture through acquisition or partnerships in the future.
“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,” Furner said in a news release. “And they’ve made it clear they want more from us in the financial services arena.”
Millions of customers interact with Walmart throughout the markets where it operates and some of the customers do not have any relationship with banks or financial advisors.
According to the Federal Reserve of the United States, a checking, savings or money market account is not held by at least six per cent of adults in the US while about 16 per ce4nt of Americans are “underbanked” which means they do have a bank account but do not make use of any alternative financial service products such as money orders. It is most likely that such Americans will opt to choose short term solutions, such as a pawn shop or a payday loan which can result in the users paying up additional charges or high rates of interest and fees.
Some financial services for its customers is already provided by Walmart. A prepaid debit card called Walmart MoneyCard in which customers can add money and use the card for making purchases is one such service. There are some features in the card that arguably encourage customers to engage in money management or help those banking customers who may have a challenged credit history such as no access to an overdraft facility or monthly fees and no minimum balance requirement.
For customers on a tight budget, alternative payment plans are also provided by the company. For example, layaway and Affirm which is a fintech company that gives customers the opportunity to make an online purchase and pay the money in instalments.
Ribbit Capital, the co-owner of the new company being created by Walmart is known to make investments in fintech companies.
(Source:www.cnbc.com)
No details about the name of the new venture or the time when it would be launched were provided by the retailer. The company however said that the main task mandate for the startup will be to create unique and affordable financial products for the employees and customers of Walmart.
The news pushed the shares of Walmart by 1.5 per cent.
A number of executives of the company including Chief Financial Officer Brett Biggs and Walmart U.S. CEO John Furner will be at the board of the new fintech start-up in which Walmart will have a majority stake. Independent industry experts will also be recruited to the board of the company, Walmart said, and added that other fintech companies may be included in the venture through acquisition or partnerships in the future.
“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,” Furner said in a news release. “And they’ve made it clear they want more from us in the financial services arena.”
Millions of customers interact with Walmart throughout the markets where it operates and some of the customers do not have any relationship with banks or financial advisors.
According to the Federal Reserve of the United States, a checking, savings or money market account is not held by at least six per cent of adults in the US while about 16 per ce4nt of Americans are “underbanked” which means they do have a bank account but do not make use of any alternative financial service products such as money orders. It is most likely that such Americans will opt to choose short term solutions, such as a pawn shop or a payday loan which can result in the users paying up additional charges or high rates of interest and fees.
Some financial services for its customers is already provided by Walmart. A prepaid debit card called Walmart MoneyCard in which customers can add money and use the card for making purchases is one such service. There are some features in the card that arguably encourage customers to engage in money management or help those banking customers who may have a challenged credit history such as no access to an overdraft facility or monthly fees and no minimum balance requirement.
For customers on a tight budget, alternative payment plans are also provided by the company. For example, layaway and Affirm which is a fintech company that gives customers the opportunity to make an online purchase and pay the money in instalments.
Ribbit Capital, the co-owner of the new company being created by Walmart is known to make investments in fintech companies.
(Source:www.cnbc.com)