(Reuters) – Swedish payments firm Klarna said on Monday it is partnering with consumer finance app OnePay to offer installment loans for purchases at retail giant Walmart in the United States.
Installment loans, a staple of consumer lending, allow borrowers to repay a fixed amount over a set period, making them a popular choice for big-ticket purchases such as electronics and automotives.
Unlike revolving credit, installment loans have fixed payments and often feature little to no interest, making them a cheaper alternative to traditional credit cards.
Shares of U.S.-based buy now, pay later lender Affirm, which previously held the sought-after partnership, were down 12% in premarket trading following the news.
Retailers are increasingly partnering with lenders to offer installment financing at checkout, in the hopes of boosting sales by giving consumers more flexible payment options.
“This is a game changer,” said Sebastian Siemiatkowski, Klarna’s co-founder and CEO. “We look forward to helping redefine checkout at the world’s largest retailer — both online and in stores.”
Buy now, pay later pioneer Klarna is preparing for its long-awaited U.S. stock market debut, publicly filing for the IPO last week and disclosing that its revenue jumped 24% in 2024. While the fintech has yet to reveal terms, it is reportedly aiming to raise over $1 billion at a valuation exceeding $15 billion.
The fintech said the exclusive partnership with OnePay will give millions of Walmart customers flexible payment options and will be directly integrated at checkout this year.
It added that customers, once approved, can choose repayment terms ranging from 3 to 36 months and manage their loan directly on the OnePay app.
(Reporting by Manya Saini in Bengaluru and Supantha Mukherjee in Stockholm; Editing by Krishna Chandra Eluri)
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