Walmart Bets Big On ‘Buy Now, Pay Later’ With Majority Stake In This Startup Firm

As we’ve covered in the past, more consumers are turning to lending companies that offer “buy now, pay later” programs for both big-ticket purchases as well as ordinary expenses like groceries. Such options can be beneficial and even cost-effective if used responsibly, but interest and fees can add up over time and many consumers have found themselves in deep debt as a result.

One for all

BNPL doesn’t seem to be going away, as evidenced by the latest major player in the growing industry. Retail giant Walmart owns a majority of the financial tech firm One, which recently confirmed that it would begin offering BNPL options to customers at certain Walmart locations across the United States.

Affirm had been handling such financing for the company since 2019, but this now pits the two lenders against each other. It’s also an apparent step toward establishing One as a full-service financial platform offering users a way to borrow, spend, and save money in one place.

How it works

As it stands, Affirm is still being promoted in Walmart stores — including at the checkout, where shoppers have the option to apply for a loan. It was reportedly a factor in generating nearly $650 billion in revenue for the company last year alone.

But if One is able to provide the same service, it would give Walmart much more control and ownership over this profitable aspect of its business.

Like other BNPL options, getting a loan through One is expected to be a relatively simple and straightforward process. But before you get too excited, it’s worth noting that some items won’t qualify … at least for now.

Groceries, alcohol, and weapons are not eligible for these loans, though most other major purchases (roughly $100 and up) are.

Chris Agee April 24th, 2024

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