US retail chain Walmart Inc said on Monday it entered a strategic partnership with investment firm Ribbit Capital to create a new fintech startup. It did not provide the name of the company but shared that the venture was developed in a strategic partnership with investment firm Ribbit Capital.
"Walmart has a relationship with millions of customers and associates built on trust, security and integrity", said Meyer Malka, Managing Partner, Ribbit Capital.
The new company expects to grow through acquisitions and partnerships.
Commenting on the dive into fintech, Walmart US's President and CEO, John Furner, said: "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".
The group already offers some financial services to its larger customers, especially prepaid and rechargeable debit cards and credit cards that offer benefits for any purchases made at Walmart stores. Its current portfolio includes no-fee mobile investment platform Robinhood; consumer technology platform Credit Karma; and Affirm, which provides innovative payment options for customers.
"By offering affordable insurance plans with an open network of doctors and hospitals, we are democratising high-quality care and bringing it to individuals and communities that have previously been overlooked by other insurers". The bank is behind us. "We will use our partners to roll out new products".
"Walmart can benefit from this move into more services and it will be interesting to see the applications that come out of the new startup".
More than 265 million customers visit Walmart each week worldwide across its 11,500 stores in 27 countries and its ecommerce websites.
The goal of Walmart may be to build an infrastructure like Alibaba has in Asia, where it's both an online retailer and a major financial services provider - all in the same platform.