Klarna, the Swedish fintech giant known for its buy now, pay later (BNPL) services, has secured an exclusive partnership with Walmart, taking over from its rival Affirm, CNBC has exclusively reported. Klarna will now provide installment loans to Walmart customers both in-store and online through the retailer’s majority-owned fintech startup, OnePay. This move strengthens Klarna’s footprint in the U.S. as it prepares for a highly anticipated public offering.
According to sources familiar with the arrangement, OnePay will facilitate the user experience through its app, while Klarna will handle the underwriting of loans ranging from three to 36 months, with interest rates between 10% and 36%. This service is expected to launch in the coming weeks and roll out across all Walmart platforms by the holiday season, potentially becoming the sole BNPL option for the retailer’s vast customer base.
The timing of this deal is significant as Klarna readies its initial public offering in the U.S., following a challenging period marked by a volatile private market valuation that once peaked at $46 billion in 2021, only to dramatically drop by 85% amid a broader fintech downturn. CEO Sebastian Siemiatkowski has been proactive in revitalizing the company, utilizing generative AI to reduce costs and personnel, helping Klarna return to profitability in 2023. Currently, analysts estimate Klarna’s value at around $15 billion, aligning closely with Affirm’s public market valuation.
Siemiatkowski expressed enthusiasm about the Walmart partnership, stating in a 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. We look forward to helping redefine checkout at the world’s largest retailer — both online and in stores.” The partnership includes an option for OnePay to acquire shares in Klarna, as noted in the company’s regulatory filings, confirming a strategic “commercial agreement” with a notable partner, which sources confirm is indeed OnePay.
The impact on Affirm, led by CEO Max Levchin, is potentially significant. Their shares dropped 11% in premarket trading, as Affirm has relied heavily on partnerships with major retailers like Walmart, Amazon, and Shopify as critical components of their business model. Affirm’s stock has been volatile since its own 2021 IPO and has decreased by 18% this year. An Affirm representative declined to comment on the situation.
For Walmart, this partnership is a boon for its fintech arm, OnePay, which has quickly amassed a $2.5 billion valuation with over 3 million active users generating an annual revenue exceeding $200 million. OnePay aims to transform into an “everything app,” broadening its reach into underserved banking sectors. CEO Omer Ismail highlighted the importance, saying, “It’s never been more important to give consumers simple and convenient ways to access fair credit at the point of sale.”
This strategic move signifies a robust effort by Walmart to convert its ample customer base into OnePay app users, which could accelerate with the potential of adding a OnePay-branded credit card, following its departure from Capital One. As consumers increasingly rely on installment loans amid record-high credit card debt levels, Walmart and Klarna’s collaboration aims to offer more accessible and fair credit options at the checkout, positioned to redefine consumer financing at one of the world’s largest retail platforms.
Original Source: https://www.cnbc.com/2025/03/17/walmart-klarna-nearing-ipo-wins-fintech-partnership-from-affirm.html
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Publish Date: 2025-03-17 17:43:00
