Klarna Becomes Exclusive BNPL Partner for Walmart OnePay

Buy now, pay later provider Klarna has agreed to become Walmart’s exclusive provider of installment loans.

The collaboration, announced Monday (March 17), gives Walmart’s customers in the U.S. access to flexible payment options in an arrangement set to be integrated into the retailer’s checkout this year.

A Klarna news release notes that OnePay, the consumer financial services platform backed by Walmart and Ribbit Capital, is already part of Walmart’s physical and digital channels. With this partnership, OnePay can now add installment loans to its product portfolio.

“This is a game changer,” Klarna Co-founder and CEO Sebastian Siemiatkowski said in the release.

“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.”

According to the release, the deal gives Walmart U.S. customers the option to use Klarna-powered OnePay loans to pay for items with repayment terms of 3 to 36 months.

Walmart has had a long-standing buy now, pay later (BNPL) partnership with Klarna rival Affirm. That partnership is still in place as of Monday, Affirm said in a regulatory filing.

“We win business when merchants want superior performance and maximum value, given our underwriting and capital markets advantages,” an Affirm spokesperson told PYMNTS. “We will continue our long-term strategy of competing on our products and entering into sustainable partnerships.”

The partnership comes days after Klarna announced it had filed paperwork for its long-awaited initial public offering (IPO).

In a letter included in the filing last week, Siemiatkowski wrote that the company’s offerings, including its BNPL feature, have drawn almost 100 million users.

“It is an amazingly diverse group of people with really one thing in common: their resentment of traditional banks,” Siemiatkowski wrote.

“They want simple and transparent fees. They want to avoid mishap fees. They want fixed and clear payoff horizons for major purchases. Ultimately, they want a bank that delivers trust by putting their interests first — and yes, preferably interest-free.”

These developments are happening as consumers are embracing pay later plans as they seek out more flexible payment options. The PYMNTS Intelligence eBook “10 Impact Statements: The 2024 Pay Later Report” found these offerings are popular with both financially strapped consumers and more comfortable individuals.

“The desire for easy, budget-friendly payment options is impacting how consumers approach large and small purchases,” PYMNTS wrote recently.

“Many consumers, regardless of income level, used installment plans to streamline spending and preserve their cash reserves. These plans were seen as an effective way to manage spending without sacrificing immediate needs.”