Walmart Creates Fintech Partnership With Ribbit Capital
12 January 2021 - 11:49AM
Dow Jones News
By Adriano Marchese
Walmart Inc. said Monday that it has joined with investment firm
Ribbit Capital to create a new fintech startup to further expand
its financial-services offerings.
The new company will be majority-owned by Walmart, and the board
will include Chief Executive of Walmart U.S. John Furner, Executive
Vice President and Chief Financial Officer Brett Biggs, as well as
Meyer Malka, managing partner of Ribbit Capital.
Ribbit has backed several well-known fintech startups, including
digital brokerage firm Robinhood Markets Inc., buy-now-pay-later
lender Affirm Inc. and personal-finance website Credit Karma
Inc.
Shares of Walmart rose 1.3% in after-hours trading. The
retailer's stock is up nearly 27% in the past 12 months.
Walmart said that it anticipates growth for the new venture may
come through partnerships and acquisitions with leading fintech
companies. Walmart's existing financial-services offerings, which
it says it will continue to offer, include its credit card, a
reloadable debit card, cash transfers and check cashing.
Mr. Furner said in prepared remarks that its customers have
"made it clear they want more from us in the financial services
arena."
In the mid-2000s, Walmart pursued an industrial loan charter
from banking regulators, which would have allowed it to operate a
bank unit. Met with tremendous resistance from the traditional
banking industry, Walmart eventually abandoned the effort.
(END) Dow Jones Newswires
January 11, 2021 19:34 ET (00:34 GMT)
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