Walmart-backed fintech One launches ‘buy now, pay later’ loans, CNBC reports

(Reuters) – Walmart’s majority-owned fintech startup One has started offering buy now, pay later (BNPL) loans for big-ticket items like electronics and power tools at some of the retailer’s U.S. stores, CNBC reported on Tuesday.

One will be going head-to-head with some of Walmart’s existing BNPL partners like Affirm, who helped the retail giant generate $648 billion in revenue last year, the report said.

Ads for both One and Affirm are vying for consumer attention in the retail chain’s electronics aisles, CNBC said in the report, citing a recent visit.

Customers can avail the facility to buy electronics, jewelry, power tools and automotive accessories, but items like groceries, alcohol, and weapons will not be eligible.

BNPL loans, which shoppers repay in a handful of installments, have been steadily gaining popularity and drove $75 billion in online spending in 2023, according to Adobe Analytics.

BNPL providers like Affirm and One partner with retailers like Amazon.com and Walmart to finance customer purchases, earning a commission on the sale and interest on the loan.

Affirm has also stepped outside the competitive e-commerce market, offering BNPL services for elective medical procedures.

One and Walmart were not immediately available to comment.

(Reporting by Mehnaz Yasmin in Bengaluru; Editing by Tasim Zahid)