As Walmartsay (NYSE: WMT) the latest plans are realized, and the retail giant will also become a presence in the hot fintech industry. The company announced Monday that it has created a start-up company to, in its words, “develop and offer modern, innovative and affordable financial solutions.”
Walmart is doing this in partnership with Ribbit Capital, a venture capital firm that is perhaps best known for supporting Robinhood, the popular next-generation online security brokerage. The new company, whose name has not been announced, will have Walmart as the majority owner. Walmart CEO John Furner will serve on its board, as will Ribbit’s managing partner Meyer Malka.
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Furner said: “Millions of customers have relied on Walmart for years to not only save money when they shop with us, but also help them manage their financial needs. And they have made it clear that they want more of us in the financial services arena. “
Walmart already offers various financial products and services to its customers – the company cites Walmart Credit Card, and its installment financing, among other examples. He insisted he would continue to offer it, implying that the new company’s operations would not affect it.
Walmart is an expert operator who knows a juicy business opportunity when he sees one. If we take into account, we can expect it to become a notable fintech player at the new company, if not necessarily one of the most powerful names in the segment.
Walmart has left the door open for expansion, saying it may be willing to step up its efforts with acquisitions and partnerships.