Klarna Secures Walmart Deal, Affirm Shares Shaken by News

Hey FinTech Fanatic!

Sources indicate that Klarna has secured an exclusive partnership with OnePay, the Walmart's consumer finance app, taking over as the retailer’s sole buy now, pay later (BNPL) provider and edging out Affirm in the process. The move strengthens Klarna’s foothold in the U.S. market just as it prepares for its highly anticipated IPO.

Walmart customers will soon have access to Klarna’s financing options both in-store and online, with loan terms ranging from three months to three years. The rollout is set to begin in the coming weeks, with full integration across Walmart’s platforms expected by the end of the year.

This effectively makes Klarna the retailer’s primary BNPL partner by year-end. Interest rates on the loans will range from 10% to 36%. For Affirm, losing such a major retail partner is a setback, especially given its long-standing relationship with Walmart.

Klarna’s timing is notable. Just last week, the company filed for a U.S. IPO, setting the stage for a public debut amid growing competition in the sector. Affirm, which went public in 2021, has focused on the North American market, while Klarna operates on a broader global scale.

According to Sebastian Siemiatkowski, the deal is a “game changer” for Klarna.

The premarket reacted sharply to the news, marking an immediate 11% drop in Affirm shares.

Read more global FinTech industry updates below ?? and I'll be back with more tomorrow!

Cheers,

Marcel

FEATURED NEWS

???? Klarna is closing three of its overseas offices in a bid to reduce costs ahead of its incoming IPO. It plans to close offices in Amsterdam and the German city of Mannheim by the end of this year, and won’t renew the lease for its office in Columbus, Ohio by the end of March 2027.

INSIGHTS

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FINTECH NEWS

???? Klarna, nearing IPO, plucks lucrative Walmart FinTech partnership from rival Affirm. It will offer loans to Walmart customers via OnePay, the retailer’s FinTech startup. The service will launch soon and expand across all Walmart channels by the holiday season, potentially becoming its sole buy now, pay later option.

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???? Robinhood unveils prediction markets hub for US retail traders. This hub will first facilitate bets for what the upper bound of the federal funds rate will be in May and outcomes of the upcoming March Madness college basketball tournaments. Read more

PAYMENTS NEWS

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???? Neurodiversity Celebration Week: Ecommpay commits to neurodiversity training. The training will focus on building a neuro-inclusive culture by enhancing understanding of neurodivergence, recognizing common traits, and providing guidance on supporting neurodivergent individuals throughout the job application, interview, and employment journey.

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???? Alipay+ powers 80% of DuitNow QR’s cross-border payments in Malaysia. The number of Alipay+ payment partners using DuitNow QR has more than doubled, now reaching 15 international apps. This expansion broadens the reach to a greater number of global customers.

???? J.P. Morgan Payments expands in Europe with iDEAL integration. This addition allows merchant clients to provide Dutch customers with the option to pay directly from their bank accounts when making online purchases. The integration is intended to streamline payment processes for businesses.

???? UnionPay partners with Cambodia and Thailand to make payments easier. The partnership between UnionPay and the National Bank of Cambodia (NBC) will allow users of the central bank’s Bakong e-wallet to pay by scanning UnionPay QR codes, as well as 46 other countries and regions covered by UnionPay.

OPEN BANKING NEWS

???? Mastercard Open Banking powers account aggregation for Virgin Money credit card customers. Customers will soon be able to see their credit card and current account balances and transactions from other banks on the app. With this smart solution, they can manage finances quickly and conveniently in one place.

REGTECH NEWS

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???? mylo one of the first companies to receive consumer finance FRA approval for digital onboarding in Egypt. This landmark achievement represents a transformative leap in Egypt’s consumer finance sector, redefining customer experience by streamlining and digitizing financial access.

DIGITAL BANKING NEWS

???? OakNorth Bank agreed to buy Community Unity Bank in the U.S. in a stock-for-stock deal as it seeks to expand its presence in the country. The U.K. business-focused digital lender said that the acquisition of the Michigan-based bank is subject to regulatory approvals.

???? ANZ Plus reaches one million customers. Maile Carnegie, Group Executive of Australia Retail, stated that ANZ Plus empowers customers to manage their finances more effectively with advanced tools for mindful spending, consistent saving, and improving overall financial well-being.

BLOCKCHAIN/CRYPTO NEWS

???? Bybit Card marks 2nd anniversary with 1.5mln cards issued. During the event, it announced innovations, including a limited-edition Premium Metal Card launching in early 2025. The card, available in physical and digital forms, enables crypto payments at Mastercard-accepting merchants.

???? Kraken to offer superfast trading with planned launch of colocation service in the coming weeks to provide ultra-low latency trading for its clients. This service aims to enhance trade execution speed, with London-based traders expecting latencies under one millisecond.

???? Crypto exchange OKX suspends DeFi service that drew EU scrutiny following reports that hackers exploited these services to launder funds from a $1.5 billion heist on trading platform Bybit. The company stated that the move allows OKX to implement additional upgrades to prevent further misuse.

???? Zuger Kantonalbank expands its crypto offering with Sygnum Bank. Sygnum’s fiat-digital asset gateway enables Zuger customers to conveniently leverage their fiat balances to buy and trade cryptocurrencies via Zuger Kantonalbank’s e-banking and mobile banking app.

???? Crypto.com secures regulatory approval in Argentina. The company has secured its Virtual Asset Service Provider (VASP) registration from the National Securities Commission (CNV). This registration will allow Crypto.com to offer a fully regulated suite of products and services in the country.

PARTNERSHIPS

???? Airwallex collaborates with Discover? Global Network to expand payment acceptance options. The collaboration will help reduce cart abandonment and enable customers to pay with their preferred cards anytime, anywhere. Airwallex now offers more than 160 payment methods, processing payments with all major schemes like Discover Global Network and local payment methods.

???? Hyundai Card and Line Pay partner for QR payments in Taiwan. Cardholders can use QR code payments at over 600,000 merchants via the Hyundai Card app. This allows users to scan or present QR codes and barcodes at various locations, including convenience stores, street markets, and more.

???? Mastercard strengthens collaboration with Paymentology to drive financial inclusion in South Africa. This collaboration equips FinTechs with expertise, infrastructure, and fast go-to-market support, driving financial inclusion and digital transformation.

?? Kuady partners with Deriv to enhance seamless trading payments across Latin America. Through this collaboration, Deriv users will have direct access to Kuady’s stand-alone payment button, enabling them to top up their accounts and withdraw funds with ease.

?? StoneX Payments and Bamboo partner to expand cross-border payment coverage in Latin America. The partnership includes an undisclosed investment by StoneX. Together, the two companies will offer a leading solution for global merchants and financial institutions that need to collect and make payments.?

???? Cash App gives users BNPL options with Afterpay partnership. Customers will have access to Afterpay’s BNPL offering when shopping online at Cash App partner merchants. The firms have formed an evolved brand with a new logo for their checkout to expand access to a seamless pay overtime experience.

???? Visa joins with Misa for digital payments push in Vietnam. This collaboration marks a significant step towards accelerating digital transformation within Vietnam’s business community, fostering greater financial inclusion and operational efficiency for enterprises of all sizes.

DONEDEAL FUNDING NEWS

??Over the last week, there were 4 FinTech deals in Europe, raising a total of €85 million (excluding one deal where the amount raised was unspecified), 2 deals in the UK and 1 deal each in Portugal and Ukraine.

???? Oro Labs raises $1.5 million for tokenized gold play. With this funding, ORO will expand its product offerings and deepen its integrations within both decentralized and traditional finance. It will enable efficient borrowing, seamless global transactions, and better yields for gold holders.

M&A

???? Capital.com Group sells crypto platform Currency.com. The sale has been finalized after the approval of 28 state regulators in the United States and the Gibraltar Financial Services Commission. Keep reading

MOVERS AND SHAKERS

???? Fiserv announces the appointment of Stephanie Cohen to the Board of Directors. Frank Bisignano, Chairman and Chief Executive Officer of Fiserv said, “Fiserv and our Board will benefit from her global leadership background and commitment to innovation and growth“.

???? Nu CPO Jag Duggal to step down in early April to attend to personal matters. The San Francisco-based executive, who’s been at Nu since January 2020 and held the role through its initial public offering in late 2021, will stay on as an adviser. Continue reading

???? Saxo UK director Michael Ridley resigns. Ridley joined Saxo UK’s board in 2022. He is a finance industry veteran with over 40 years of experience in investment banking, focusing on sovereigns and financial institutions. Read on

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