Walmart is entering the fintech arena.
The Bentonville retailer, on Monday, Jan. 11, unveiled its latest endeavor: a new fintech startup. Walmart is partnering with Ribbit Capital to provide high-tech financial solutions for Walmart’s customers.
Walmart did not release the name of the new fintech startup.
This strategic partnership between Walmart and Ribbit Capital will utilize Walmart’s retail expertise and Ribbit Capital’s deep fintech knowledge to create new innovative financial solutions. Ribbit Capital is a fintech-focused venture capital based in Palo Alto, Calif. with a portfolio that includes mobile investment platform Robin Hood, Credit Karma, Money View and more.
Ribbit Capital, according to CrunchBase, has made 116 investments across 11 funds.
Walmart will be the majority owner of the new fintech startup, with Walmart U.S. president and CEO John Furner and Walmart executive vice president and chief financial officer Brett Biggs serving on its board. Ribbit Capital managing partner Meyer Malka will also have a board seat.
“For years, millions of customers have put their trust in Walmart to not only save them money when they shop with us but help them manage their financial needs. And they’ve made it clear they want more from us in the financial services arena,” Furner said in a statement. “We’re thrilled to work with Ribbit Capital in a new venture to help us deliver innovative and needed options to our customers and associates – with speed and at scale.”
According to a company blog post, Walmart expects to add “independent industry experts” to the fintech’s board and will be building a management team of fintech leaders. Walmart officials plan to grow the fintech through partnerships and by acquiring other fintech companies.
Walmart saw its stock price increase on Monday with the announcement of the new company’s launch. Opening at $146 per share, Walmart stock ended up at $147.29 at the closing bell, an increase of 66 cents per share. In the past year, Walmart’s highest value has been $153.66.