By Yasin Ebrahim
Investing.com - Walmart unveiled plans on Monday to create a fintech start-up with venture capital firm Ribbit Capital to develop "modern and affordable" financials solutions.
Walmart (NYSE:WMT) was up 2% on the news.
The new fintech company, which will be majority owned by Walmart, would develop affordable financial products for Walmart employees and customers, the company said. Its board will include John Furner, president and chief executive officer, Walmart U.S.; Brett Biggs, executive vice president and chief financial officer, Walmart; and Meyer Malka, managing partner of Ribbit Capital.
Ribbit's current portfolio includes no-fee mobile investment platform Robinhood; consumer technology platform Credit Karma; and Affirm, which provides innovative payment options for customers.
There was no mention of when the start-up was set to launch.
"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,” Furner said in a news release. “And they’ve made it clear they want more from us in the financial services arena," Walmart said.