Walmart, the largest US retailer, is a majority shareholder in the fintech company One, which has started providing buy now, pay later (BNPL) payment alternatives to Walmart consumers who are buying pricey things like power tools and electronics.

According to CNBC, the service has already begun to roll out at a number of Walmart locations in the US. It now joins fintech Affirm as a prominent payment option that customers may use when making purchases at the shop.

Walmart shops are already displaying advertisements for both One and Affirm, as the top payment companies compete for customers' attention in the electronics aisles and other areas that feature expensive merchandise.

Walmart: Increasing competition for in-store payments

Walmart customers will still be able to fund Affirm, the BNPL company founded by PayPal co-founder Max Levchin, but since One is mostly owned by the store, it makes sense that One will receive significant marketing at the point of sale (POS).

It's possible that Affirm may eventually stop using Walmart for its services entirely, since it has recently focused on providing BNPL services in the healthcare industry, mostly for elective medical procedures, rather than retail and e-commerce.

Regarding One, the BNPL company that was established in 2019, its entry inside Walmart shops is a continuation of earlier initiatives to broaden its product line in an effort to attract new clients.

The fintech provided 5% interest rates on savings accounts up to $100,000 in 2023, which was more than twelve times higher than the 0.4% national average at the time.

The fintech, which was started by Omer Ismail, a former partner at Goldman Sachs, garnered a lot of interest in 2021 after Walmart became involved.

Its goal of developing into a financial super app where users can save, borrow, and spend money is one step closer to reality now that it has entered the lending market with BNPL choices accessible.

"I have to imagine the goal is to have all this stuff, whether it's a credit card, buy now, pay later loans or remittances, to have it all unified in an app under a single brand, delivered online and through Walmart's physical footprint," former Goldman Sachs consultant Jason Mikula says in an interview with CNBC.

For the time being, Affirm continues to be Walmart's most popular BNPL option, but One's entry into some locations is expected to start a payments battle in both the company's in-store and online domains.

According to Adobe Analytics, BNPL facilitated US$19.2 billion in online spending in only the period between January and March 2024, representing a 12% annual growth.

It is only reasonable to assume that BNPL's appeal will increase even further in the coming months given the availability of additional BNPL alternatives at the top US store.