Walmart to Start Fintech With Ribbit

NORTH BERGEN, NJ - AUGUST 23: People past walk by a Walmart store on August 23, 2020 in North Bergen, New Jersey. Walmart saw its profits jump in latest quarter as e-commerce sales surged during the coronavirus pandemic
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The retail giant Walmart, already a popular check-cashing place, said this week it will launch its own fintech startup to expand into technology-driven financial services.

Walmart will partner with Ribbit Capital, an investment firm known for funding financial sector disruptors like investment platform Robinhood and credit score provider Credit Karma, the company said in a statement Monday. It didn’t release a name or many details, but did make it clear that “modern” and “tech-driven” financial services are the focus and it anticipates growing the new company through acquisitions and partnerships with leading fintech companies.

Walmart offers more traditional retail banking services, including credit cards, the Walmart Money Card debit card, in-store check cashing, and money transfers. The addition of fintech—short for financial technology—suggests Walmart is aiming to bring more sophisticated digital offerings to its customers. 

“They’ve made it clear they want more from us in the financial services arena,” Walmart U.S. President and CEO John Furner said in the statement.

Walmart will own a majority of the fintech company and its board will include Furner.