In 2021, Walmart said it would create a fintech startup with venture capital firm Ribbit Capital, which has backed companies such as BNPL loan provider Affirm and investing app Robinhood.
The goal at the time was to quickly develop modern and affordable financial products for Walmart employees and customers, the retailer said. Walmart took majority ownership and added several top executives to its board, per CNBC. It would aim to become a one-stop shop for financial services for customers from a variety of socioeconomic groups, its CEO and former Goldman Sachs executive, Omer Ismail, told The Wall Street Journal when the company acquired two financial services firms and took on the brand name One.
Now called OnePay after a rebrand in March, that vision is closer to reality. The firm now offers a suite of financial services including banking, credit cards and loans, all through the OnePay app, and it will soon launch investment services. In September, CNBC reported OnePay would add wireless plans, and this month, the same outlet reported that the firm would soon offer cryptocurrency trading through its app.
OnePay has kept many aspects of its business under wraps, and Walmart doesn’t speak much about the firm’s business; OnePay hasn’t publicly disclosed how many users it has, its current ownership structure or how much of its business is derived from Walmart shoppers, for example. But now, Walmart seems to be focused on using OnePay to expand its financial services in a way that gives it some control and yet keeps Walmart as an organization insulated from any of the risks associated with running a financial institution. OnePay declined to comment for this story.
A Walmart spokesperson provided this statement: “Walmart is dedicated to delivering convenient and secure payment experiences for our customers. Our relationship with OnePay demonstrates our commitment to offering innovative payment solutions that make shopping at Walmart easier and more accessible.”
While it offers its services to non-Walmart customers, OnePay this year has added features that further expand its relationship with the retailer and its customers. In March, OnePay said its app would handle Walmart’s buy-now, pay-later loans, now provided by Klarna, which replaced Affirm. In June, OnePay announced new Walmart credit cards in partnership with Synchrony. The company also offers a digital wallet that can be used at checkout in Walmart stores and on Walmart’s website.
“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,” John Furner, president and CEO of Walmart U.S., said in a news release in 2021. “They’ve made it clear they want more from us in the financial services arena.”
The finance app also boosts the value of Walmart+ memberships, Walmart CFO John David Rainey said on the company’s last earnings call in August. OnePay’s Walmart credit card will provide 5% cash back at Walmart for Walmart+ members, versus 3% for nonmembers and 1.5% for non-Walmart purchases.
“That is as good as anything that is out there in the market. Then you throw on top of that a
