Walmart Stock (WMT) closed out Monday’s trading session up 2.47% following its announcement of dropping Affirm for Klarna as its new “buy now, pay later” service. Affirm stock (AFRM) correspondingly fell 4.2% following the announcement, with shares dropping as much as 15.8% as the market opened. Klarna will be available via finance app OnePay at online and physical checkouts of Walmart, according to a statement on Monday.
“This is a game changer,” said Klarna’s chief executive officer Sebastian Siemiatkowski. The deal gives Klarna access to the big box retailer’s millions of customers and a new avenue of expansion in the US. For Walmart, the announcement is the latest in a line of improvements the retail giant is trying to make to build on a successful 2024. Klarna is a growing platform, with the Stockholm-founded digital payments company’s revenue climbing 24% last year. With both companies coming off great years, the move was only right.
Walmart and Klarna Climb Following Team-Up Announcement
With the e-commerce industry rapidly growing, Walmart (WMT) is emerging as a top company in both digital and in-person shopping. The move to Klarna will support both methods of sales for WMT. Klarna said Monday that it will work with Walmart-backed consumer finance app OnePay to offer customers installment loans on purchases at the retailer. It will give Walmart’s U.S. customers and members flexible payment options for online and in-store purchases. Additionally, once approved for installment loans, Walmart’s U.S. customers will be able to choose from a range of repayment terms, from three to 36 months, and can manage their loans in the OnePay app.
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Klarna last week filed for an IPO listing on the New York Stock Exchange, although details around the number of shares to be offered and pricing has not yet been announced. If/when the company goes public, shares will likely be very valuable straight away following the partnership with America’s largest wholesale retailer.
Affirm also took a hit following Klarna’s IPO filing, meaning worrying times for AFRM stock ahead. Despite great performances for its stock to close out 2024 and enter 2025, the drop from Walmart may send shares tumbling more throughout the rest of the week.
