Walmart’s fintech initiative, One, is introducing Buy Now Pay Later (BNPL) loans for high-cost goods in over 4,600 U.S. Walmart stores. This move aims to make such items more accessible to a wider range of customers and could boost sales and competition within the retail sector. By adding this BNPL feature, Walmart is broadening its business scope beyond traditional retail.
This adventurous endeavor by One places it in competition against Affirm, which has been the exclusive provider of installment loans to Walmart customers since 2019. The market presence of One may trigger trends in consumer behavior and innovations in the services provided due to the heightened competition with Affirm.
One’s growing significance within Walmart may eventually replace collaborations with Affirm, Capital One, and other critical third parties in the U.S. retail industry. This aligns with One’s ambition to become a ‘financial superapp’ for users, offering solutions for standard saving, spending, and borrowing needs while simplifying and enhancing the shopping experience.
Operational since 2021, One is innovatively leveraging cutting-edge technology, reshaping the industry’s idea of convenience and customer focus.
Walmart’s One expands into BNPL lending
Its mobile-first approach democratizes access to their suite of digital financial services, bridging the gap between traditional banking systems and digital generation expectations.
A commitment to transparency and customer-friendly policies has seen One gain significant trust, experience an influx of new memberships, and robust user engagement. One has not only attracted users but also talent from established banking and payment institutions. Their disruptive influence has initiated a power shift in the retail industry from traditional third-party affiliations towards self-sufficient tech capabilities.
In 2022, One introduced a debit account feature, enabling customers to pay for goods and services directly from their bank account. This simplified and secure payment method has gained popularity, leading to plans for further enhancements and new features to improve customer experience and satisfaction.
One’s move into BNPL loans underscores their readiness to compete with established lenders, heralding ongoing disruption in retail finance models and a shift towards a new era of digital finance. Their approach signals a trend of tech-driven transformation in the financial world, setting new strategies in a rapidly evolving digital economy.
