Introducing One: Walmart’s Next Big Move In The Fintech World
Walmart, known for its high-quality products at affordable prices, is now making waves in the fintech world with its majority-owned startup, One. This fintech startup is taking on the Buy Now, Pay Later (BNPL) market by offering installment loans for big-ticket items at Walmart’s 4,600+ U.S. stores. This move puts One in direct competition with leading BNPL provider Affirm, which has been Walmart’s exclusive provider of installment loans since 2019.
One’s push into lending is a clear sign of its ambition to become a financial superapp, offering a wide range of financial services including saving, spending, and borrowing money. Since its inception in 2021 with former Goldman Sachs veteran Omer Ismail as CEO, One has been quietly developing its products, including a debut debit account in 2022.
Visiting a New Jersey Walmart location, you’ll see ads for both One and Affirm vying for attention among the store’s electronics section. Loans from either provider are available for purchases starting at around $100 and going up to several thousand dollars, with annual interest rates ranging from 10% to 36%.
Buy now, pay later services like One and Affirm have seen a surge in popularity, with BNPL driving $19.2 billion in online spending from January to March this year, a 12% year-over-year increase. As the competition heats up in the BNPL space, Walmart’s strategic moves with One are setting the stage for a battle among various players in the financial services sector.
How One is Disrupting Traditional Banking Models
One’s rapid expansion at Walmart hints at its potential to disrupt traditional banking models and partnerships in the retail space. With a goal to offer a unified financial platform under a single brand, One is positioning itself as a major player in the financial services industry.
By leveraging Walmart’s massive customer base and physical footprint, One aims to provide a seamless financial experience for its users, bridging the gap between online and in-store transactions. Walmart’s investment in Vizio and One’s expansion into lending beyond installment loans signal the retailer’s commitment to diversifying its revenue sources and growing its profits faster than its sales.
One’s innovative approach to financial services, combined with Walmart’s scale and resources, positions the fintech startup as a strong competitor in the fintech landscape. With plans to expand into investing and other areas, One is poised to generate significant revenue in the near future.
In Conclusion
Walmart’s partnership with One represents a strategic move to reshape the fintech landscape and offer customers a comprehensive financial solution. As One disrupts traditional banking models and enters new markets, its competition with established players like Affirm is intensifying.
With its unique value proposition and commitment to financial inclusion, One is well-positioned to cater to Walmart’s vast customer base and drive growth in the financial services sector. As the battle for… (The rest of this content is blocked off. Become a member of the Extreme Investor Network to gain access to exclusive insights and analysis on this topic.)
