(Reuters) – Walmart-owned fintech startup One has begun offering buy now, pay later (BNPL) credits on big-ticket items such as electronics and power tools at some of the retailer’s U.S. stores, a source said on Tuesday.
The fintech joins fellow Affirm as one of the options Walmart (NYSE:) customers will have when shopping at the retail giant.
The news, first reported by CNBC citing a recent visit, said One and Affirm ads are vying for consumer attention in the retailer’s electronics aisles.
“For now, Affirm will remain a financing option at Walmart, but will likely compete with One at point of sale (POS),” JPMorgan wrote in a note Tuesday, adding that Walmart may offer another One prominently at POS.
Affirm has also moved beyond the competitive e-commerce market to offer BNPL services for elective medical procedures, Reuters reported earlier on Tuesday.
BNPL providers such as Affirm and One partner with retailers such as Amazon.com (NASDAQ:) and Walmart to finance customer purchases, receiving commissions on sales and interest on the loan.
BNPL loans, which consumers repay in multiple installments, have been steadily gaining popularity and led to $75 billion in online spending in 2023, according to Adobe (NASDAQ:) Analytics.
Customers can use this location to purchase electronics, jewelry, power tools and auto accessories, but items such as food, alcohol and guns will not be eligible for the program.
One is ramping up its offerings in an attempt to attract more customers. Last year, it began offering an interest rate of 5%, more than 12 times the national average rate of 0.4%, for savings accounts up to $100,000.
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