American retail giant Walmart Inc announced on Monday that it is forming a fintech company that will “develop and offer modern, innovative and affordable financial solutions.”
The official statement outlined that Walmart will bring retail knowledge to the fintech venture, while Ribbit will help to scale the new business with its financial expertise. Though companies did not reveal much about the new venture, it seems to be targeting “Walmart’s customers and associates.”
Walmart will be the majority stakeholder in the company.
Commenting on the dive into fintech, Walmart US’s President and CEO, John Furner, said: “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.”
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Next American Fintech Giant?
Walmart operates one of the largest chain of retail stores in the United States and has a vast presence abroad. Many experts are speculating that with the new fintech, the Arkansas-headquartered company is challenging the dominance of Amazon among American retail consumers.
The retail giant already offers some extent of financial services with its MoneyCenter locations where consumers can cash checks, receive tax preparation services and send money overseas.
The consumer financial data stored by Walmart through store spendings and its credit and prepaid cards will give it an edge in knowing its consumers’ financial habits.
“Walmart has a relationship with millions of customers and associates built on trust, security and integrity,” Ribbit Managing Partner, Meyer Malka said. “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.”