Klarna Replaces Affirm in Walmart BNPL Partnership

Klarna has announced it will be the exclusive provider of 'buy now, pay later' loans for Walmart, replacing Affirm, and partnering with OnePay, a fintech backed by Walmart and Ribbit Capital. This strategic move is expected to boost Klarna's upcoming IPO prospects as it expands its footprint in the U.S. market. Affirm's shares have taken a significant hit, dropping over 9% after the announcement, reflecting investor concerns about increased competition in the BNPL sector. Klarna's CEO, Sebastian Siemiatkowski, highlighted the potential impact of this partnership, noting that it offers a smarter shopping experience for millions of Walmart customers. The shift marks a notable development in the BNPL landscape, with Affirm's previous exclusivity with Walmart now ended, and other competitors like Block expanding their offerings. Klarna's global reach and strategic alliances suggest it is well-positioned to capitalize on the growing U.S. BNPL market.