Walmart to Launch New Fintech with Ribbit Capital Partnership

Today, Walmart announced the creation of a new fintech startup created to develop and offer modern, innovative and affordable financial solutions.

Walmart has struck up a partnership with Ribbit Capital - the venture capital firm behind fintech all-stars Robinhood, Affirm, and Credit Karma - to roll out some new, as-yet-unspecified fintech products. The venture will combine Walmart's retail knowledge and scale with Ribbit's fintech expertise to deliver technology-driven financial experiences. Though companies did not reveal much about the new venture, it seems to be targeting "Walmart's customers and associates".

The company will be majority-owned by Walmart.

The group already offers some financial services to its larger customers, especially prepaid and rechargeable debit cards and credit cards that offer benefits for any purchases made at Walmart stores. The company plans to add independent industry experts to the board and to build a management team of experienced fintech leaders.

The new company expects to grow through acquisitions and partnerships.

Founded in 2012, Ribbit Capital follows the mantra "the world needs more financial innovation", and considers the world of finance to be a barely evolved version of antiquated processes which existed prior to the internet.

What's more, the agency found that roughly 16% of people are considered "underbanked", meaning that they have a bank account but have also used an alternative financial service product like a money order, pawn shop loan, payday loan or tax refund advance.

"Walmart has a relationship with millions of customers and associates built on trust, security and integrity", said Meyer Malka, Managing Partner, Ribbit Capital.

Scott Benedict, director of retail studies at Texas A&M University, said the partnership is a smart move by Walmart.

Walmart has more than 4,700 stores across the country and employs almost 1.5 million in the USA alone.