Walmart is launching a mysterious new fintech startup with Ribbit

Walmart is launching a mysterious new fintech startup with Ribbit
Walmart pushed back the launch of its subscription service from this spring due to COVID-19.REUTERS/Brendan McDermid
  • Walmart announced it will launch a fintech startup.
  • The company is partnering with investment firm Ribbit.

Walmart announced the formation of a new fintech startup, along with Ribbit Capital the company announced Monday.

The retail giant shared that it will create affordable financial products for customers and employees, although Walmart did not say the name of the new startup or when it will launch. The majority of the startup will be owned by Walmart, with several Walmart executives on the board, with plans to add industry experts. Walmart also said that the company will likely grow through partnerships ans acquisitions with other fintech companies.

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Customers have "made it clear they want more from us in the financial services arena," president and CEO of Walmart US John Furner said in a statement. Walmart already offers some financial services, which it says will continue, like the Walmart CapitalOne credit card, the prepaid Walmart MoneyCard, and even cashing checks in stores.

"Walmart's newly-announced fintech joint venture with Ribbit Capital will provide myriad growth opportunities, with the leveraging of its massive customer base at the center of the initiative," Moody's Vice-President and Senior Credit Officer Charlie O'Shea, said in a note to investors. "Walmart has been slowly and tactically expanding its financial service offerings to its customers, and measured expansion of these capabilities makes sense as it will deepen these all-important customer relationships."

Walmart is in a comfortable position, despite the pandemic. In November, the retailer reported $134.7 billion in sales, up over 5% year over year.