Walmart Inc. said late Monday it will start its own financial technology company, aimed at customers and employees, with the help of investment firm Ribbit Capital, which has backed investment platform Robinhood, personal finance portal Credit Karma, and other big names in the industry.
stock rose more than 2% in the extended session Monday, after ending the regular trading day 0.5% higher.
The new company aims to “develop and offer modern, innovative and affordable financial solutions,” the retailer said in a statement.
“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.
The company will be majority-owned by Walmart, and board members will include Walmart U.S. Chief Executive John Furner, Walmart’s Chief Financial Officer 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.”
Founded in 2012, Ribbit was an early backer of Robinhood, a trading app popular with younger investors. In addition to Robinhood and Credit Karma, Ribbit also backed payment-technology company Affirm Holdings Inc. Affirm earlier Monday raised to $41 to $44, from $33 to $38 a share, the expected price range of its planned initial public offering.
Walmart said 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.
Shares of Walmart have gained nearly 27% in the past 12 months, compared with gains around 16% for the S&P 500 index.