On Monday, January 11, the American retailer created a startup that specializes in financial technologies or created “Fintech” to provide its services to the company’s customers and employees. The group has partnered with venture capital firm Ripid Capital for the project, which has invested in online brokerage platform Robinhood, which has grown in popularity during its epidemics.
On Wall Street, Walmart shares rose 1.5% in electronic trading at midnight (Paris time).
The startup will provide financial services, but the Bentonville-based group (Arkansas, South America) did not provide further details and did not release the name or date of the launch. It will be officially launched. The new company will be owned by Walmart and its board of directors will include several executives, including Walmart US boss John Furner and the company’s chief financial officer Brett Pix.
With more than 11,500 brands worldwide, including about 4,700 in the United States, Walmart has millions of customers. The company is highly concentrated in rural America, where its affordable prices and variety of products (food, equipment, clothing, etc.) are essential for sale. It employs a total of 2.2 million people, including 1.5 million on American soil.
The group already offers some financial services to its larger customers, especially prepaid and rechargeable debit cards and credit cards that offer benefits for any purchases made at Walmart stores.