Zhitong Financial APP learned that on Friday, a company$Walmart (WMT.US)$Shareholding startups are looking to compete with buy-and-pay companies. The startup, One, is preparing to launch its own buy-and-pay service as soon as next year, according to a source familiar with the matter.
One, which is majority owned by Walmart Inc, hopes to launch a service that will allow shoppers to use Walmart Inc's website and stores as well as other retailers, the sources said. Part of the reason for this is that the economic environment is more challenging and consumers feel squeezed by inflation.
Shares of buy-and-pay company Affirm Holdings (AFRM.US) fell on Friday. Walmart Inc declined to comment.
As monthly retail sales figures continue to rise, One is breaking into a growing category of payment services. Some Americans are under pressure from rising food and housing prices as a result of inflation, and being stretched may stimulate their interest in shopping in other ways. Pay-as-you-go allows customers to pay off their purchases step by step on a fixed monthly basis.
Retail executives, including Doug McMillon, chief executive of Walmart Inc, have said that even wealthier consumers are feeling inflationary pressure. About 75 per cent of Walmart Inc's growth in grocery market share over the past two quarters has come from households earning more than $100000.
Walmart Inc, the largest private employer and grocer in the United States, has long provided financial services in many of his stores. Walmart Inc has a money center (Money Center), where customers can get bank-related services, such as printing cheques, remittances or receipts. Many of these services are aimed at families with low incomes, no relationship with traditional banks, or no credit history to qualify for credit cards.
Last year, Walmart Inc co-founded and held a stake in a financial technology start-up with Ribbit Capital, one of the investment companies behind Robinhood (HOOD.US). Earlier this year, the company acquired two other fintech startups, One and Even, for an undisclosed amount and adopted the name One, which aims to become an integrated app where consumers can manage their money.
Pay-as-you-go has become a more crowded area, with market participants including Affirm, PayPal Holdings Inc, Klarna and AfterPay owned by Block (SQ.US). Apple Inc (AAPL.US) also announced plans to launch his own pay-as-you-go service, Apple Pay Later.
Walmart Inc has provided customers with buy-and-pay service through Affirm. Before last holiday season, Walmart Inc ended his installment plan and replaced it with a buy-and-pay service.