Walmart’s fintech venture, One, has made a strategic move by introducing buy now, pay later (BNPL) loans at its vast network of over 4,600 U.S. stores. This expansion positions One as a direct competitor to Affirm, the current BNPL market leader and Walmart’s long-standing installment loans partner since 2019. Following the announcement, Affirm’s premarket stock value experienced a significant 7.7% drop, signaling potential market uncertainty.
Walmart’s decision to expand its financial services offerings indicates an impending battle within the retail giant’s aisles and online platforms, involving a diverse range of financial players. Fintech firms, credit card companies, and traditional banks alike are poised to vie for a share of the lucrative BNPL market.
One’s expansion into lending signifies a significant step towards its ambition to become a comprehensive financial superapp, aiming to offer a comprehensive mobile platform for saving, spending, and borrowing. BNPL solutions have gained immense popularity among consumers, providing a convenient payment option for both everyday items and larger purchases. Adobe Analytics data reveals a remarkable 12% increase in BNPL-driven online spending during the first three months of 2023, showcasing the growing consumer preference for this payment method.
