US retail giant Walmart is launching its own fintech startup in a joint venture enterprise with Ribbit Capital.
The venture will bring together 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,” John Furner, president and CEO, Walmart US says. “We’re thrilled to work with Ribbit Capital in a new venture to help us deliver innovative and needed options to our customers and associates - with speed and at scale.”
Walmart - which already offfers a number of financial products, including credit cards, cheque cashing, money transfers and installment financing - has yet to give any specific details on its product plans, although partnerships with other fintechs and acquisitions are written into the business blueprint.
The company also plans to add independent industry experts to the board and to build a management team of "experienced fintech leaders".
Majority-owned by Walmart, the joint venture will likely lean on the fintech expertise in Ribbit Capital's current portfolio, which includes the likes of Robinhood, Credit Karma and Affirm.
“Walmart has a relationship with millions of customers and associates built on trust, security and integrity,” Meyer Malka, managing partner, Ribbit Capital, says. “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.”