Walmart’s financial tech start-up has acquired two new companies to help expand on last year’s announcement of Walmart-based financial services.
Last year, Walmart, which is the largest employer and physical retailer in the United States, branched off a bit from its typical routine when it announced that two Goldman Sachs bankers would help the company form its own financial products. The initiative had some impressive backing, as it teamed up with the investment firm Ribbit Capital, which was a key player in forming the popular investment app Robinhood. The financial service start-up from Walmart now appears to be getting even more serious, as it is acquiring 2 new companies to help expand its capabilities and services.
The combination of the original Walmart start-up and the 2 new companies will be called ONE, which is already the name of one of the companies that Walmart acquired. These new pickups figure to help Walmart improve its app experience in creating a singular hub for spending, saving, and investing. ONE previously has offered banking services, credit cards, as well budget tracking, so it seems evident that these will be incorporated into the new Walmart-backed financial tech company as well.
The idea behind this from Walmart is that Walmart has a massive reach in America, yet many Americans are without even a bank account, cannot take part in credit, and struggle to save money. With Walmart being such a central retailer, this consumer base can now be accessed through new services that there likely will be a significant demand for.
These acquisitions figure to create a company between the 3 businesses that have over 200 employees, as well as over $250 million to work within marketing and growth strategies. The transactions behind the acquisitions are not official yet, but the companies have jointly stated that they expect this to be done by the end of the second quarter in 2022.
