How Walmart Is Quietly Building Its Own Financial Kingdom

Move over, Amazon. While the e-commerce giant has been busy conquering the celestial reaches of cloud computing, Walmart, the king of brick-and-mortar retail, has been plotting a different kind of dominion – one built on cold, hard cash. Enter Walmart's fintech startup, One, a name that belies its ambitious goal: becoming the sole financial sovereign over its loyal army of budget-conscious shoppers.

One's recent foray into buy now, pay later (BNPL) loans for big-ticket items at select Walmart stores is a declaration of war. Forget the friendly neighborhood rivalry with Target; this is a full-on joust against established players like Affirm, who previously held exclusive rights to BNPL services within Walmart's walls. The message is clear: Walmart wants to control every aspect of the customer experience, from product selection to payment processing.

This isn't Walmart's first rodeo in the financial arena.

The retail behemoth has a long, checkered history of attempting to establish a financial services empire. Remember those clunky MoneyCenter kiosks tucked away in the corner of your local Walmart? Those were relics of a bygone era, a time when regulators squashed Walmart's dreams of becoming a full-fledged bank. This time around, Walmart is playing it smarter. One is a separate entity, a carefully crafted Trojan horse ridden by veterans of the finance world. It's a strategic move that allows Walmart to distance itself from past regulatory battles while wielding the immense power of its brand recognition.

One's target isn't just the occasional BNPL purchase. They're setting their sights on becoming a one-stop financial shop – a digital haven for the millions who frequent Walmart's aisles. The early signs are promising. One boasts a debit card with enticing cashback rewards on Walmart purchases, and whispers about credit card management and investment services are already swirling. It's a financial app designed to keep customers firmly within the Walmart ecosystem, a closed loop where every dollar spent fuels the retail giant's ever-expanding influence.

This Walmart-centric financial world has its advantages for the budget-conscious consumer.

One caters specifically to the low- and middle-income demographic that forms Walmart's core customer base. Fee-free services and high-yield savings accounts are a siren song to those drowning in a sea of rising costs. But there's a potential downside. Trapping oneself within a single financial ecosystem can limit options and stifle competition. What happens if a better credit card offer appears elsewhere? Will breaking free from the Walmart web be a cumbersome chore?

The implications for existing financial players are stark. Companies like Capital One, whose partnership with Walmart for co-branded credit cards is facing an uncertain future, could be left scrambling for scraps. The loyalty of these retail giants is a fickle thing, and the allure of a captive audience like Walmart's is undeniable. This potential shift could reshape the entire financial services landscape, particularly for those players targeting a similar demographic.

The battle lines are drawn.

In one corner stands the established guard, armed with experience and brand recognition. In the other, a young upstart backed by the formidable might of retail royalty. The battleground? The wallets, and ultimately, the loyalty, of millions of American consumers. As this financial joust unfolds, one thing is certain: the crown for control over everyday spending habits is very much up for grabs.