Walmart's (NYSE:WMT) majority-owned fintech startup, One, has started to offer buy now, pay later (BNPL) loans for large purchases at some of its over 4,600 U.S. stores, according to a CNBC report.
This move positions One as a direct competitor to Affirm (AFRM), the current leader in BNPL services, which has been Walmart's exclusive partner for installment loans since 2019.
Recently, Walmart expanded its relationship with Affirm by adding it as a payment option at its self-checkout kiosks.
Affirm shares plunged over 7.7% in premarket trading following the news.
The move by Walmart suggests an impending showdown within the aisles and online platforms of America’s largest retailer, involving various financial players, from fintech firms to credit card companies and traditional banks.
One's expansion into lending marks a major step towards its goal of becoming a financial superapp, serving as a comprehensive mobile platform for saving, spending, and borrowing.
BNPL solutions have become increasingly popular among consumers for both everyday items and larger purchases. According to Adobe Analytics, from January through March of this year, BNPL contributed to $19.2 billion in online spending, marking a 12% increase from the same period the previous year.