The Strategist

Walmart launches its own fintech startup

10/18/2021 - 06:47

The Wall Street Journal (WSJ) reports that Walmart, a major US retailer, will create its own fintech startup led by former top Goldman Sachs executives. According to the newspaper, the startup will be a joint venture with venture fund Ribbit Capital, but Walmart will be the main owner.

Mike Mozart
Mike Mozart
The paper's interlocutors said that one option being considered is to buy the neobank startup, but that the venture will not obtain a banking licence. The firm will be led by former Goldman Sachs consumer lending unit head and top executive Omer Ismail and David Stark. They officially started work back in August. 

As the WSJ notes, Walmart has been trying to grow its financial services business for several decades, but this area is still a small part of the company's annual revenue. Walmart CFO Brett Biggs confirmed that the company plans to expand its list of financial services. "Everything we will be doing will be aimed at expanding what we are already doing. The wider adoption of Walmart Pay is definitely something that fits into the ecosystem we're trying to build," he said.

In September Walmart was ranked number one in a ranking of global family businesses by consultancy EY and the University of St Gallen in Switzerland. The company's revenues are estimated at $559.1 billion, with US investment fund Berkshire Hathaway in second place ($245.5 billion) and Italian holding company EXOR in third ($145.3 billion).


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