Walmart said Monday that it is creating a fintech start-up with Ribbit Capital, one of the venture capital firms that has backed Robinhood, the online trading platform that has exploded in popularity over the past 10 months.
Walmart didn't tip its cards too much on its future plans, although it did say it will "develop unique and affordable financial products for Walmart employees and customers."
Acquisitive and Loaded
The new startup will be majority-owned by Walmart, and its board will include CFO Brett Biggs and Walmart U.S. CEO John Furner. Walmart said it will also name independent industry experts to the board and may acquire or partner with other fintech companies. With a market cap of over $400 billion, mouths are watering across Silicon Valley.
With over 4,200 locations in the U.S., Walmart interacts with millions of customers - some of whom don't have access to financial services.
Walmart already offers some financial services for customers, including the Walmart MoneyCard, a prepaid debit card that customers can load with money and use for purchases. But the broader push into fintech, and potential partnerships with Robinhood and Credit Karma, which is also backed by Ribbit Capital, opens the doors for services including banking, credit cards, insurance, brokerage, money management, and lending — basically everything.
“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,” Furner said in a news release. “And they’ve made it clear they want more from us in the financial services arena."