Walmart has broadened its collaboration with the financial technology firm Affirm, introducing a new 'buy now, pay later' (BNPL) choice at self-service checkout stations in over 4,500 locations.
This move marks a significant step in the retail giant's efforts to provide more flexible payment solutions to its customers.
The innovative option, part of Walmart's ongoing commitment to customer convenience, allows shoppers to make purchases and pay for them over time, enhancing the shopping experience.
With this addition, Walmart aims to deal with a wider range of consumers needs and preferences, particularly in today's fast-paced retail environment.
Walmart Adds New Payment Flexibility with Extended BNPL Options
Affirm announced that customers who wish to use this service must spend a minimum of $144 on various Walmart items, excluding food products. The maximum amount that can be financed is $4,000.
This new arrangement allows shoppers to distribute their payments across a period ranging from three to 24 months using Affirm's system.
Pat Suh, the Senior Vice President of Revenue at Affirm, stated that expanding their collaboration with Walmart to include these pay-over-time options at self-checkouts will enhance the buying power of many consumers. This process is especially beneficial during the holiday season and in the future.
Shoppers at Walmart now have the option to split their payments for three to 24 months, thanks to the partnership with Affirm, as stated by a company spokesperson-the financing offered by Affirm caps at $4,000.
Customers must access the Affirm app or website to complete their transactions when using Walmart's self-checkout kiosks. This process involves entering some personal information, including the last four digits of their social security number. The spokesperson further explained that once approved, shoppers will be provided with a barcode, which they can use to complete the payment process.
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Walmart and Affirm Strengthen Ties with Expanded Partnership
By offering more flexible payment methods, Walmart has strengthened its partnership with Affirm, a financial technology company. This partnership began in 2019 when Walmart introduced Affirm's installment payment options at nearly 4,000 Supercenters across the United States.
In recent years, Affirm has expanded its 'buy now, pay later' services to include other major retailers. For instance, Amazon started using Affirm in August 2021 for certain purchases over $50. Shortly afterward, Target began offering installment payments through Affirm and Sezzle, with Affirm being an option for purchases over $100.
Suh shared that their research shows over half of Americans (54%) want the 'buy now, pay later' option at checkouts. Additionally, 76% of customers might delay or skip purchases if Affirm's services aren't available.
"By growing our partnership with Walmart and introducing our clear, monthly payment plans at their self-checkout kiosks in the U.S., we aim to empower even more customers to manage their spending during the holidays and beyond," said Suh.
Affirm is also working to reach customers in physical stores and its leading online business. In a webcast in October 2022, Affirm's CFO Michael Linford mentioned launching their Debit+ card to enhance their presence in physical retail spaces.
Linford noted that finding a successful approach for physical stores remains a challenge in the industry.
Meanwhile, Bank of America Securities data shows that Afterpay leads in the U.S. with 4.2 million monthly active users, followed by Affirm and Klarna, each with 3.3 million, and Zip with 755,000 users as of Q2 2023.
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