Walmart Inc. of Bentonville announced Monday the creation of a new fintech startup designed to develop and offer "modern, innovative and affordable financial solutions."
The retailer didn't give a name for the company, for which it will be the majority owner. But it said it is partnering with Ribbit Capital of Palo Alto, California, which invests in fintech companies. Ribbit's portfolio includes no-fee mobile investment platform Robinhood; consumer technology platform Credit Karma; and Affirm, which provides payment options.
Walmart said the startup will combine its retail knowledge and scale and Ribbit's fintech expertise to deliver financial services tailored to Walmart's customers and workers. The retail giant said growth might come through partnerships and acquisitions.
"For years, millions of customers have put their trust in Walmart to not only save them money when they shop with us but help them manage their financial needs. And they've made it clear they want more from us in the financial services arena," John Furner, president and CEO of Walmart U.S., said in a news release. "We're thrilled to work with Ribbit Capital in a new venture to help us deliver innovative and needed options to our customers and associates — with speed and at scale."
The new company's board will include Furner; Brett Biggs, executive vice president and chief financial officer of Walmart; and Meyer Malka, managing partner of Ribbit Capital.
"Walmart has a relationship with millions of customers and associates built on trust, security and integrity," Malka said. "When we combine our deep knowledge of technology-driven financial businesses and our ability to move with speed with Walmart's mission and reach, we can create and deliver financial offerings that are second to none."