Walmart said it’s forming a start-up with Ribbit Capital to offer affordable financial services for customers and employees.
Nicholas Kamm/AFP via Getty Images
Walmart is diving into the fintech space, and it’s teaming up with one of the venture-capital firms behind Robinhood.
The retail giant said it’s forming a start-up with Ribbit Capital to offer affordable financial services for customers and employees. It will be majority-owned by Walmart and include two of its executives on its board, along with Meyer Malka, managing partner of Ribbit Capital, and industry experts.
Ribbit’s portfolio includes retail investing app Robinhood, credit score monitor Credit Karma, and payment plan firm Affirm. Walmart said the service, which hasn’t been named publicly, will combine its retail expertise with Ribbit’s fintech know how.
John Furner, president and CEO of Walmart US, said customers have “made it clear they want more from us in the financial services arena.” The company said it will continue to offer its existing financial services, which include a credit card, a debit card, check cashing and money transfers.
Shares of fintech firms Green Dot and MoneyGram International dipped following the announcement. Walmart shares were up 1.5% Tuesday morning.
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