Walmart has announced an agreement with Ribbit Capital (one of the companies that invested in Robinhood) to create a fintech startup.
The aim of the startup will be to offer innovative, reliable and modern financial solutions.
The partnership combines Walmart’s retail skills and Ribbit Capital’s fintech expertise.
The startup will be mostly owned by Walmart. Joining the board will be:
- John Furner, President and CEO of Walmart US;
- Brett Biggs, Executive Vice President and Chief Financial Officer of Walmart;
- Meyer Malka, Managing Partner of Ribbit Capital.
These names could soon be accompanied by others with international fintech experience. The newly formed startup, whose name is not yet known, may well grow by acquiring other companies in the sector.
Walmart and the Robinhood financier
The union with Ribbit Capital takes Walmart even further into financial services, giving a more refined and sophisticated service to its customers. It was a specific request from consumers themselves, as stated by John Furner, President and CEO of Walmart US:
“For years, millions of customers have put their trust in Walmart to not only save them money when they shop with us but help them manage their financial needs. And they’ve made it clear they want more from us in the financial services arena. We’re thrilled to work with Ribbit Capital in a new venture to help us deliver innovative and needed options to our customers and associates – with speed and at scale”.
Meyer Malka, Managing Partner of Ribbit Capital added:
“Walmart has a relationship with millions of customers and associates built on trust, security and integrity. When we combine our deep knowledge of technology-driven financial businesses and our ability to move with speed with Walmart’s mission and reach, we can create and deliver financial offerings that are second to none”.
After all, Ribbit Capital, founded in 2012, has always been on a mission to change the world of finance. It has done so by investing in Robinhood, the zero-commission mobile trading app that is very popular in the US, in the Credit Karma platform and in Affirm, which promotes new payment options.
For its part, Walmart is not new to financial services. It already offers a credit and debit card, money transfer and more. But its strength is obviously its ubiquity. It has 11,400 shops in 26 states, with a customer base of 265 million people per week. In 2020 alone, it recorded revenues of $524 billion.
With the startup created together with Ribbit Capital, Walmart could give an extra boost to the changes that are affecting the financial sector.