Klarna has officially taken over as Walmart's exclusive provider of Buy Now, Pay Later (BNPL) loans, replacing competitor Affirm. This partnership will offer installment loans for Walmart purchases, available online and in-store, with term options between 3 to 26 months. Affirm's stock reacted negatively, reflecting concerns over losing a partnership that contributed significantly to its revenue. Klarna, riding a wave of momentum, is simultaneously pursuing an initial public offering, indicating strong aspirations for growth and consumer engagement in the BNPL market.
Affirm's former partnership with Walmart represented approximately 5% of its gross merchandise volume and roughly 2% of its adjusted operating income.
Klarna's collaboration with Walmart marks a significant advancement in its pursuit of becoming a leading BNPL provider, expanding its reach in the U.S. market.
The partnership allows consumers to pay for Walmart purchases in installments, with repayment terms spanning from 3 to 26 months, driving larger consumer engagement.
Sebastian Siemiatkowski, Klarna's CEO, emphasized that this deal signifies a great vote of confidence in their vision, aiming to make Klarna accessible everywhere for everything.
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