Klarna, OnePay unveil installment loans tie-up for Walmart shoppers in US

Reuters

Mon, Mar 17, 2025, 4:44 AM 1 min read

(Reuters) - Swedish payments steadfast Klarna said connected Monday it is partnering with user concern app OnePay to connection installment loans for purchases astatine retail elephantine Walmart successful the United States.

Installment loans, a staple of user lending, let borrowers to repay a fixed magnitude implicit a acceptable period, making them a fashionable prime for big-ticket purchases specified arsenic electronics and automotives.

Unlike revolving credit, installment loans person fixed payments and often diagnostic small to nary interest, making them a cheaper alternate to accepted recognition cards.

Shares of U.S.-based bargain now, wage aboriginal lender Affirm, which antecedently held the sought-after partnership, were down 12% successful premarket trading pursuing the news.

Retailers are progressively partnering with lenders to connection installment financing astatine checkout, successful the hopes of boosting income by giving consumers much flexible outgo options.

"This is simply a crippled changer," said Sebastian Siemiatkowski, Klarna's co-founder and CEO. "We look guardant to helping redefine checkout astatine the world's largest retailer — some online and successful stores."

Buy now, wage aboriginal pioneer Klarna is preparing for its long-awaited U.S. banal marketplace debut, publically filing for the IPO past week and disclosing that its gross jumped 24% successful 2024. While the fintech has yet to uncover terms, it is reportedly aiming to rise implicit $1 cardinal astatine a valuation exceeding $15 billion.

The fintech said the exclusive concern with OnePay volition springiness millions of Walmart customers flexible outgo options and volition beryllium straight integrated astatine checkout this year.

It added that customers, erstwhile approved, tin take repayment presumption ranging from 3 to 36 months and negociate their indebtedness straight connected the OnePay app.

(Reporting by Manya Saini successful Bengaluru and Supantha Mukherjee successful Stockholm; Editing by Krishna Chandra Eluri)