Exclusive: Klarna secures major Walmart fintech deal, leaving Affirm in the dust!

Swedish fintech firm Clear, ready to leap into the public market, has scored a major win by becoming the exclusive provider of buy now, pay later loans for retail giant Walmart. This coveted partnership, which will see Clear offering loans to Walmart customers through the retailer’s fintech startup OnePay, represents a significant shift in the landscape of buy now, pay later services.

Key Points of the Partnership:

• Clear will provide loans ranging from three months to 36 months with interest rates between 10% to 36%.
• OnePay will handle the user experience through its app, while Klarna will make underwriting decisions for the loans.
• The new product will be launched soon and scaled to all Walmart channels by the holiday season, positioning it as Walmart’s exclusive buy now, pay later option.

This development intensifies the rivalry between Affirm and Klarna, two heavyweights in the buy now, pay later space. Affirm, a more U.S.-centric player, saw its shares drop by 13% following the announcement of this partnership, symbolizing a significant competitive blow.

The Significance for Klarna:

• The deal with OnePay comes at a pivotal moment for Klarna, as it gears up for a highly anticipated IPO.
• Klarna, once valued at $46 billion, underwent a roller coaster valuation ride but has since regained momentum under CEO Sebastian Siemiatkowski’s strategic direction.
• Siemiatkowski labels the OnePay partnership as a “game changer,” highlighting the transformative potential of offering installment loans to millions of Walmart shoppers.

In Conclusion:

Klarna’s partnership with OnePay and Walmart not only marks a major milestone for the fintech industry but also sets the stage for a new era in the buy now, pay later landscape. By seizing this exclusive deal, Klarna solidifies its position in the market and opens up new avenues for growth and innovation. As consumers continue to seek flexible payment solutions, Klarna’s move to power Walmart’s buy now, pay later experience is poised to reshape the retail and fintech sectors.