One, Walmart-Backed, Introduces Buy Now, Pay Later Service

One, a fintech company in which Walmart holds a majority stake, has recently introduced Buy Now, Pay Later (BNPL) offerings for customers purchasing high-value items at selected stores in the United States. This initiative aims to provide consumers with more flexible payment options, allowing them to make purchases and spread the cost over time.

Walmart’s fintech arm, One, has introduced a new buy now, pay later (BNPL) service, expanding its offerings to include installment payment options for customers looking to purchase high-value items. With this service, shoppers can now buy items like electronics and power tools and pay for them over time through scheduled installments, providing them with greater flexibility and affordability in managing their purchases.

The introduction of this new service positions One, Walmart’s fintech arm, as a direct competitor to Affirm, providing Walmart customers with additional payment flexibility, especially in high-value departments such as electronics. With advertisements for both services competing for visibility, shoppers now have the option to choose between One and Affirm for their installment payment needs, further enhancing their purchasing experience at Walmart.

As reported by CNBC, while Affirm will remain an available payment option at Walmart, One is anticipated to receive more prominent promotion at the point of sale. Analysts at JPMorgan speculate that Walmart’s strategy could result in direct competition between Affirm and One at checkout locations. Additionally, beyond retail, Affirm has broadened its BNPL services to encompass elective medical procedures, as reported by Reuters.

The “buy now, pay later” (BNPL) model has surged in popularity, allowing consumers to split their purchases into manageable payments over time. This approach has become increasingly prevalent in online retail, with BNPL transactions totaling $75 billion in sales in 2023, according to Adobe Analytics. One, Walmart’s fintech arm, has now entered this space, offering BNPL options for select high-value items such as electronics and automotive accessories. However, certain product categories like groceries, alcohol, and weapons are excluded from One’s BNPL service. While Affirm remains a payment option at Walmart, One is anticipated to receive more prominent promotion at checkout, potentially leading to direct competition between the two services. Additionally, Affirm has diversified its BNPL offerings beyond retail to include elective medical procedures, as reported by Reuters.

One, the fintech arm of Walmart, has implemented a multifaceted approach to attract and retain customers. Alongside its buy now, pay later (BNPL) service for high-value items, One has introduced a savings account feature offering a 5% interest rate. This interest rate is notably higher than the national average, providing customers with an attractive incentive to deposit and save their money with One. 

Indeed, by providing a diverse range of financial services such as BNPL options and high-yield savings accounts, One is strategically positioning itself to cater to the varying needs and preferences of consumers. This comprehensive approach enhances One’s value proposition, making it more attractive to a broader audience within the financial services sector. By offering both short-term payment flexibility and long-term savings opportunities, One is not only addressing immediate consumer demands but also fostering long-term relationships with its customers. This multifaceted strategy contributes to solidifying One’s position as a prominent player in the rapidly evolving landscape of financial technology.