Walmart intends to incorporate Western Union services within their retail outlets.
In a bid to enhance its financial services offerings and improve the shopping experience for customers, American retail giant Walmart has partnered with fintech company OnePay, co-founded with venture capital firm Ribbit Capital. Launched in January 2021, OnePay aims to expand Walmart's financial services across credit, debit, savings, peer-to-peer payments, and buy now, pay later (BNPL) options.
OnePay's strategic plans include issuing and underwriting two new credit cards – a general-purpose Mastercard and a Walmart-only store card – through a partnership with Synchrony Bank. The company manages the customer experience through its app, keeping interactions within Walmart's ecosystem. OnePay's BNPL offering is provided in partnership with Klarna.
The fintech venture targets a broad national reach and offers a transparent, rewarding, and easy-to-use experience for consumers. Leveraging Mastercard's global payments network, OnePay aims to deliver secure and seamless payment experiences. Walmart will own the majority of the startup's shares but has not yet disclosed detailed plans.
Walmart's move to strengthen its credit card business comes after ending its prior exclusive credit card partnership with Capital One in 2024. With OnePay, Walmart positions itself to rebuild and grow its financial services footprint, aiming to serve millions of customers with a comprehensive suite of financial products.
In a separate initiative, Walmart has partnered with Western Union to integrate money transfers into its U.S. locations. This partnership aims to serve customers who rely on both companies for essential purchases, with speed, security, convenience, and trust being paramount. The services, including domestic and international money transfer, bill payment, and money order offerings, will be introduced starting in spring 2021 at over 4,700 locations.
Walmart customers can have funds paid out at 550,000 retail locations or into bank accounts, wallets, or cards. This partnership marks a continuation of Walmart's efforts in providing affordable financial solutions for shoppers and staff, dating back more than 20 years. To date, Walmart has saved its customers over $1.5 billion through its financial services.
Walmart is not new to collaborations with financial service providers. In addition to OnePay and Western Union, the retailer has partnered with Affirm to provide installment payment options. The integration with Western Union follows a previous partnership with Amazon in 2019, allowing Amazon customers to purchase goods in person at local Western Union locations using their native currency.
In summary, Walmart's fintech company OnePay, formed with Ribbit Capital, is driving Walmart's relaunch of credit card programs and a broader portfolio of digital financial services. These initiatives aim to empower customers financially and improve their shopping and payment experience.
- The general-purpose Mastercard and Walmart-only store card, issued and underwritten by OnePay, will be available through a partnership with Synchrony Bank.
- Leveraging AI and technology, OnePay's app manages the customer experience within Walmart's ecosystem, including its buy now, pay later (BNPL) options provided in partnership with Klarna.
- While Walmart aims to serve millions of customers with a comprehensive suite of financial products through OnePay, the specifics of its business and technology strategies have not been fully disclosed.
- Walmart's partnership with Western Union is aimed at integrating money transfers into its U.S. locations, with the goal of serving customers with speed, security, convenience, and trust.
- In a bid to provide affordable financial solutions for shoppers and staff, Walmart has collaborated with multiple financial service providers like OnePay, Western Union, Affirm, and even Amazon in the past, offering installment payment options, money transfers, and more.
