Swedish fintech company Klarna recently announced it will be replacing its rival Affirm as the exclusive buy-now-pay-later provider for Walmart, in a shocking move from Affirm being the provider for some time.
According to a news release, the Stockholm-based company stated on March 17 that it will work with Walmart-backed consumer finance app OnePay to offer customers installment loans for purchases at the retailer.
What this means for Walmart customers
The move will provide Walmart’s U.S. customers with flexible payment options for online and in-store purchases. OnePay offers mobile services like a digital wallet, where customers can link their debit or credit cards to their accounts to check out online or make contactless in-store payments at Walmart.
OnePay is already integrated with Walmart’s physical and digital channels, offering financial services to millions of customers. Its partnership with Klarna will expand its portfolio to include installment loans alongside banking, credit and payment products, per the news release.
Klarna and OnePay CEOs discuss the new partnership
Walmart customers can use the digital wallet to shop for thousands of items, including electronics, home and garden, automotive, and more. Once approved, they can choose from repayment options that span three to 36 months.
“This is a game changer,” Sebastian Siemiatkowski, co-founder and CEO of Klarna, stated in the news release. “Millions of people in the U.S. shop at Walmart every day — and now they can shop smarter with OnePay installment loans powered by Klarna.”
OnePay CEO Omer Ismail shared similar sentiments.
“It’s never been more important to give consumers simple and convenient ways to access fair credit at the point of sale — and that’s especially true for the millions of people who turn to Walmart every week for everything,” he said. “We’re incredibly excited to partner with Klarna to give consumers easier and more seamless ways to shop with OnePay at Walmart.”
Walmart first partnered with Affirm in 2019, offering customers installment payment options on significant online and in-store purchases, according to The Wall Street Journal. The retailer later provided the buy-now-pay-later service for smaller purchases at checkout kiosks in 2023.
Wayne Pommen, Affirm’s chief revenue officer, said in November that Walmart and other major retailers like Amazon, Shopify and Target were its “crown jewel partnerships,” CNBC reported.
“We win business when merchants want superior performance and maximum value, given our underwriting and capital markets advantages. We will continue our long-term strategy of competing on our products and entering into sustainable partnerships,” an Affirm spokesperson said at the time, per CNBC.
