WMT Walmart Inc

By Adriano Marchese 

Walmart Inc. said Monday that it has joined with investment firm Ribbit Capital to create a new fintech startup to further expand its financial-services offerings.

The new company will be majority-owned by Walmart, and the board will include Chief Executive of Walmart U.S. John Furner, Executive Vice President and Chief Financial Officer Brett Biggs, as well as Meyer Malka, managing partner of Ribbit Capital.

Ribbit has backed several well-known fintech startups, including digital brokerage firm Robinhood Markets Inc., buy-now-pay-later lender Affirm Inc. and personal-finance website Credit Karma Inc.

Shares of Walmart rose 1.3% in after-hours trading. The retailer's stock is up nearly 27% in the past 12 months.

Walmart said that it anticipates growth for the new venture may come through partnerships and acquisitions with leading fintech companies. Walmart's existing financial-services offerings, which it says it will continue to offer, include its credit card, a reloadable debit card, cash transfers and check cashing.

Mr. Furner said in prepared remarks that its customers have "made it clear they want more from us in the financial services arena."

In the mid-2000s, Walmart pursued an industrial loan charter from banking regulators, which would have allowed it to operate a bank unit. Met with tremendous resistance from the traditional banking industry, Walmart eventually abandoned the effort.

(END) Dow Jones Newswires

January 11, 2021 19:34 ET (00:34 GMT)

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