As we delve into the core of financial and technological advancements, we notice Fintech One, backed by the retail giant Walmart, pushing its boundaries into the lending sphere. A recent development is the launch of their ‘Buy Now, Pay Later’ (BNPL) service, indicating a significant shift into a full-suite financial service company.
Often associated with the concept of financial empathy, Fintech One’s journey started with its prime aim of banking the unbanked section of society, a mission particularly difficult to achieve in the U.S. What did not avoid observation was Walmart’s strategic partnership with Ribbit Capital and that Walmart lodged a venture with a fintech to create Fintech One. With Walmart’s vast consumer base and Ribbit Capital’s ever-enriching expertise in fintech, it was a match made to leave marks.
Launch of BNPL is an exemplary show of their commitment to foster financial empowerment and facilitate smoother monetary transactions for their users. BNPL, also colloquially referred to as point-of-sale loans, are essentially simple installments-based repayments system that consumers can employ at the time of checkout. Promising a fast, flexible, and transparent method, these loans have seen a rapid rise in popularity especially among millennials and gen Z consumers who prefer availing services now and paying for them in parts later. The addition of BNPL service is poised to elevate Fintech One’s game manyfold, focusing on the convenience factor.
While this is a significant step indicating Fintech One’s entry into the lending circuit, it does not stop here. As per the information available on the company’s website, it is also set to lay the groundwork for additional lending products. This move is primarily based on data collected across Walmart’s massive customer base, providing a unique platform for such financial services.
The technology that underpins this BNPL service is developed by One, designed to meet high standards of scalability and security. The launch of BNPL is accompanied by the addition of 30 new skilled employees specializing in credit product development, underwriting, capital markets, and compliance.
However, entering this sphere is not necessarily a smooth sail. Several traditional banks and financial institutions have been struggling with credit risks and bad loans through the pandemic. Hence, BNPL comes with its unique set of risks and managing them will be a considerable part of scaling in this sphere.
Yet, the leap by Fintech One, backed by Walmart, towards lending provides a glimpse into trends in retail-embedded finance. As BNPL services gain traction and consumer preference shifts towards flexible financing options, companies like Fintech One are poised to lead the charge in this retail and fintech amalgamation, treading thoughtfully in a delicate balance of risk and innovation. Fintech One’s journey serves as an exuberant reminder of how encompassing services and flexibility to customers forms the cornerstone of a successful FinTech endeavor.