Walmart has partnered with Klarna to offer exclusive installment loan services to its customers in the United States. The collaboration integrates Klarna’s installment payment options into Walmart’s checkout system, providing shoppers with extended repayment options. This move is expected to increase accessibility to flexible payment solutions, particularly as installment-based transactions gain popularity among consumers looking for budget-friendly alternatives. The agreement also expands Klarna’s presence in the retail sector, reinforcing its position in the competitive buy now, pay later (BNPL) market.
Walmart’s decision to work with Klarna follows its existing BNPL arrangement with Affirm, a competing provider. Despite this new agreement, Affirm confirmed that its partnership with Walmart remains in place. Klarna’s increasing user base and recent IPO filing indicate its efforts to strengthen its foothold in financing solutions. Klarna’s installment loans will now be integrated into OnePay, a financial services platform backed by Walmart and Ribbit Capital, further expanding OnePay’s offerings.
How will Klarna’s installment loans work at Walmart?
Customers at Walmart will be able to use Klarna-powered OnePay installment loans for purchases, with repayment periods ranging from three to thirty-six months. This service will be available for in-store and online purchases, allowing consumers to manage their spending more efficiently. By offering structured repayment plans, Walmart aims to cater to shoppers who prefer installment-based purchasing options over traditional credit cards.
What does this mean for Walmart and Klarna?
For Walmart, incorporating Klarna’s installment loan services aligns with its strategy to enhance payment flexibility for customers. Klarna, on the other hand, benefits from increased exposure in the U.S. retail industry at a time when consumer demand for BNPL services is growing. Klarna Co-founder and CEO Sebastian Siemiatkowski commented on the partnership:
“Millions of people in the U.S. shop at Walmart every day — and now they can shop smarter with OnePay installment loans powered by Klarna. OnePay choosing Klarna as their exclusive installment loans partner at Walmart in the U.S. is a huge vote of confidence as we pursue our goal of being available everywhere for everything.”
Affirm, Walmart’s previous BNPL partner, responded to Klarna’s involvement by emphasizing its continued commitment to delivering competitive financial services. An Affirm spokesperson stated:
“We win business when merchants want superior performance and maximum value, given our underwriting and capital markets advantages. We will continue our long-term strategy of competing on our products and entering into sustainable partnerships.”
The announcement also comes shortly after Klarna filed paperwork for an initial public offering (IPO), signaling its ambition to expand its financial technology operations. Klarna’s IPO filing highlighted its user base of nearly 100 million customers and its approach to offering financial services outside of traditional banking structures. Klarna has positioned itself as a company that aims to provide transparent and straightforward financial solutions.
Consumer interest in flexible payment plans has grown in recent years, with BNPL services becoming an alternative to credit cards. Reports suggest that installment plans are favored by consumers across income levels, as they provide structured and predictable repayment terms. The expansion of installment-based financing at Walmart indicates a broader shift in consumer spending habits, where shoppers seek ways to manage costs without accumulating revolving credit debt.
As Klarna integrates its services into Walmart’s checkout process, the success of this partnership will depend on consumer adoption and the ability to compete with existing BNPL providers. Klarna’s IPO plans further indicate its long-term strategy to scale its business and attract more users. Meanwhile, Walmart continues to explore financial tools that align with customer preferences, reinforcing its focus on convenience and affordability. The impact of this collaboration will be observed in how well Klarna’s installment loans resonate with Walmart’s diverse customer base.
