What’s Going On Here?Walmart pulled on a hoody and started using the word “ideate” earlier in the week, because the retailer announced it’s launching its very own fintech startup. What Does This Mean?Walmart has struck up a partnership with Ribbit Capital – the venture capital firm behind fintech all-stars Robinhood, Affirm, and Credit Karma – to roll out some new, as-yet-unspecified fintech products. Then again, this isn’t entirely new ground for the retail giant, which already offers a variety of financial services like credit and debit cards. In fact, that might be why it’s edging into the space: it already has a treasure trove of data on how its millions of customers manage their money. Why Should I Care?The bigger picture: Bank to the future.
Walmart’s been expanding beyond its retail business for a while now: it’s ventured into both the health and insurance markets, as well as teamed up with Microsoft to bid on social media giant TikTok. The retailer’s fintech flirtation, more specifically, comes after new US regulations made it easier for non-banks to get into the lending business. It might not be the only company limbering up to give traditional banks a run for their money, either: Big Tech reportedly has its eye on the sector too.
Zooming out: Tech, tech, tech, boom.
Fintech isn’t just big in America: online payments firm Checkout.com has just been crowned Europe’s most valuable private company. It was valued at $15 billion in its latest financing round – almost three times as much as it was worth seven months ago. The firm – together with America’s Stripe and the Netherlands’ Adyen – dominates a digital payments industry that’s been booming amid the recent online shopping craze. And you might be able to benefit from its astronomic rise soon too: the company has said it’s eventually planning to list on the stock market. | 