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Backed By Ribbit, Walmart’s New Fintech Enterprise Eyes Growth Through M&A

Retail giant Walmart is dipping its toe into the fintech game with the help of investment firm Ribbit Capital, according to a recent announcement from the big-box store. To that end, they will create a new company that is aiming to develop “modern, innovative and affordable financial solutions.”

WalmartTogether with Ribbit, Walmart aims to blend its retail know-how with the investment firm’s fintech expertise in order to deliver tech-based solutions and experiences tailored to the store’s customers and associates.

“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,” said John Furner, president and CEO of Walmart U.S., 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 information from the big-box retail outlet, it will be the majority owner of the new company. Furner, along with Brett Biggs, executive vice president and chief financial officer at Walmart, Meyer Malka, managing partner of Ribbit Capital, will sit on its board.

“The company plans to add independent industry experts to the board and to build a management team of experienced fintech leaders,” reads the announcement. “It anticipates that growth may come through partnerships and acquisitions with leading fintech companies.”

FROM TWITTER

Nigel Walsh @nigelwalsh

"Really interesting to see this. For me, this is huge news and Opportunity in the #FinTech & (hopefully) #InsurTech space. Those who own distribution, get to own the customer. What do you think folks, the start of something big… https://www.finextra.com/newsarticle/37253/walmart-to-launch-fintech-startup"

Ribbit was founded in 2012, and it is backing notable entities like free stock trading platform Robinhood, consumer-tech company Credit Karma and payments company Affirm, reads the announcement.

“It takes money to change money,” says the investment firm on its website. “Our goal isn’t just to write checks. It’s to deposit and grow ideas. We look at finance with a hungry eye for change, and with a desire to share our learning and experience–including some painful mistakes along the way–with ambitious entrepreneurs.”

“Walmart has a relationship with millions of customers and associates built on trust, security and integrity,” Malka said. “When we combine our deep knowledge of technology-driven financial businesses and our ability to move with speed with Walmart’s mission and reach, we can create and deliver financial offerings that are second to none.”

FROM TWITTER

Nick Anthony @EconWithNick

"One item I just realized I've overlooked regarding Walmart's fintech adventure: Many Walmarts have check cashing services in the store. So even if we ignore their first ILC proposal, is this really a surprise? Has anyone talked about this angle of it?"

No name for the new entity was provided in the announcement, nor was there a timeline included for when it might launch.

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