Walmart announced Monday it will start up its own fintech company, focused on customers and employees, with the assistance of investment firm Ribbit Capital, which has backed investment platform Robinhood, personal finance portal Credit Karma, and other known names in the industry.
Walmart [$WMT] stock popped more than 2% in the extended session Monday, after ending the regular trading day 0.5% higher. The new company plans to “develop and offer modern, innovative and affordable financial solutions,” the retailer noted in a statement. The SEC Finally Cracks Robinhood
“The venture will bring together Walmart’s retail knowledge and scale with Ribbit’s fintech expertise to deliver tech-driven financial experiences tailored to Walmart’s customers and associates,” it said.
Make no mistake, the company will be majority-owned by Walmart, and board members will include Walmart U.S. CEO John Furner, Walmart’s CFO Brett Biggs, and Ribbit’s managing partner Meyer Malka, the retailer said.
“The company plans to add independent industry experts to the board and to build a management team of experienced fintech leaders,” it said. Growth will come “through partnerships and acquisitions with leading fintech companies.”
Pioneered in 2012, Ribbit was an early supporter of Robinhood, a trading app popular among millennial investors. In addition to Robinhood and Credit Karma, Ribbit also funded payment-technology company Affirm Holdings. Affirm earlier Monday raised to $41 to $44, from $33 to $38 a share, the expected price range of its planned IPO. Walmart Jumps Into Self-Driving Vehicle Space
Walmart added that it would continue to offer existing financial services and third-party partnerships, including credit cards and services such as check cashing, money transfers, and layaway.
Amid the pandy, shares of Walmart have gained nearly 27% since last January, compared with gains around 16% for the S&P 500.