Walmart Transforms Shopping Experience with Buy Now, Pay Later Options and Introduction of Real-Time Payment Services
Walmart Alters Checkout Methods with BNPL Switch and Real-Time Bank Payments
In a significant shift for its payment landscape, retail giant Walmart announced on March 17, 2025, that it will replace its Buy Now, Pay Later (BNPL) partner, Affirm, with Klarna, a Swedish fintech leader. This transition is set to be completed by the 2025 holiday season.
Klarna will offer payment plans ranging from 3 to 36 months, targeting high-ticket items such as electronics and furniture. Affirm currently contributes approximately 2% of Walmart's adjusted operating income, indicating the retailer's reliance on BNPL for large transactions.
Sebastian Siemiatkowski, CEO of Klarna, hailed the deal as a "game changer," emphasizing its role in reshaping customer checkout experiences.
In another move, Walmart is aiming to bypass interchange fees from Visa and Mastercard by expanding its pay-by-bank option. This effort is facilitated through partnerships with The Clearing House's RTP network and the Federal Reserve's FedNow. The service, integrated into Walmart Pay, enables same-day settlement for retailers, potentially saving millions daily in avoided fees.
Real-time payments also aim to mitigate overdraft risks tied to delayed transactions, although widespread adoption may hinge on incentives like discounts or rebates. Smaller banks and credit unions face pressure to adopt instant payments to retain customers, as Walmart's scale intensifies demand.
Parallel to these payment changes, Walmart is investing $9 billion in store remodels and technology upgrades. Plans involve energy-efficient lighting, waste-reduction initiatives, digital maps for navigation, inventory trackers, and the building or conversion of over 150 stores over five years.
Walmart's dual focus on BNPL flexibility and fee-free payments underscores its mission to dominate both checkout convenience and cost efficiency. While Klarna's installment plans cater to budget-conscious shoppers, real-time payments position Walmart as a leader in reducing transactional friction-a move likely to put pressure on competitors and reshape retail payment norms.
For updates on Walmart's evolving checkout systems, visit Walmart's official announcements.
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Walmart is investing $9 billion in digital technology upgrades, including inventory trackers, to enhance its logistics and business operations in Africa.
The trucking industry may see changes as Walmart's technology investments could streamline supply chain management and imports from various regions, including Africa.
By partnering with The Clearing House's RTP network and the Federal Reserve's FedNow, Walmart is aiming to import digital payment technology for its business, potentially reducing costs and fostering financial inclusion in less developed regions.
The shift towards real-time payments and partnerships with fintech leaders like Klarna could revolutionize Walmart's finance sector, opening up new opportunities for business growth and technology innovations across diverse markets.
