The retail chain announced it will be expanding its market with a new fintech, created to develop and offer financial technology solutions.
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January 12, 2021 2 min read
This story originally appeared on Alto Nivel
Walmart unveiled the creation of its own fintech startup created for the development and offering of financial solutions, as the retail company continues to expand beyond its main market.
The retail company is in a strategic partnership with Ribbit Capital, one of the investment firms behind Robinhood , seeking to unify its business with its expertise in fintechs, with the purpose of providing financial practices inspired by technology and adapted to consumers of Walmart.
Financial technology companies – fintech – have the purpose of offering their clients ways to save, request loans and make investments online or by phone, without having to deal with a traditional bank.
Walmart interacts with millions of customers , including some who do not have a relationship with a bank or financial advisor.
“Over the years, millions of customers have placed their trust in Walmart not only to save them money when they shop with us, but also to help them manage their financial needs, ” said John Furner, CEO of Walmart in a statement.
The company will be majority owned by Walmart and growth is expected from partnerships and acquisitions with other financial technology companies , according to a company statement.
“We are delighted to be working with Rabbit Capital on a new venture to help us deliver needed and innovative options to our customers and associates , with speed and scale, ” said Waltmart President and CEO John Furner in the United States.
Ribbit Capital was founded in 2012 , it is a venture capital company based in Palo Alto, California. The firm seeks to invest in companies that move and create friendly platforms for users in order to improve the financial services sector. It provides capital to technology-based companies that develop loans, personal finance, insurance, financial software, bitcoin services, among other issues.
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