Swedish Fintech Giant Klarna Displaces Affirm in Walmart Partnership
- Klarna Group to replace Affirm Holdings as Walmart’s BNPL provider
- Installment loans offered through OnePay digital payments app
- Integration to be completed by holiday season
- Walmart customer base spends hundreds of billions annually
Klarna Group, the Swedish buy now, pay later company, has announced that it will replace Affirm Holdings as the exclusive provider of installment loans at Walmart. The partnership will offer loans through OnePay, a digital payments app used by Walmart shoppers during checkout online and in-store. OnePay is a service provided by One, a fintech backed by Walmart and venture capital firm Ribbit Capital. Affirm first partnered with Walmart in 2019, but the change will be made gradually, with Klarna’s installment loan options integrated into Walmart’s checkout over the coming weeks and scaled to all channels by the holiday season. The move gives Klarna access to a vast customer base that spends hundreds of billions of dollars annually. Walmart is the largest retailer in the United States, with $681 billion in revenue for the fiscal year ending January 31. Klarna offers loans ranging from three months to 36 months.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Klarna replacing Affirm Holdings as the exclusive provider of installment loans at Walmart and includes details about the partnership between Walmart and Klarna. It also mentions the timeline for integration and the impact on Affirm’s sales. However, it lacks personal perspective or opinion presented as fact.
Noise Level: 3
Noise Justification: The article provides relevant information about Klarna replacing Affirm Holdings as the exclusive provider of installment loans at Walmart. It also mentions the impact on both companies and their strategies. However, it could provide more context or analysis on the reasons behind this change and its potential consequences for the industry.
Financial Relevance: Yes
Financial Markets Impacted: Yes
Financial Rating Justification: The article discusses a change in partnership between Walmart and financial companies Klarna and Affirm Holdings, which impacts financial markets as it affects the business of both companies. The switch from Affirm to Klarna for installment loans at Walmart checkout could impact their revenue and market share.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event in the text and it does not discuss any major impact or consequences.
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