KEY TAKEAWAYS
Affirm ( AFRM ) shares are tumbling Monday morning after rival Klarna, which is preparing to go public in the U.S., said it is now the exclusive provider of Buy Now, Pay Later (BNPL) loans for Walmart ( WMT ).
Klarna said it would be partnering with OnePay to provide Walmart consumers with installment loans this year. OnePay is a consumer fintech backed by Walmart and Ribbit Capital and is available in the retail giant's online and physical checkouts, according to a news release.
"This is a game changer,” Klarna CEO Sebastian Siemiatkowski said. “Millions of people in the U.S. shop at Walmart every day — and now they can shop smarter with OnePay installment loans powered by Klarna."
Once approved for a loan, consumers can choose within the OnePay app on repayment terms ranging from three months to three years.
According to CNBC , which reported the news earlier, the more U.S.-focused Affirm has been the exclusive provider for BNPL loans for Walmart since 2019.
Affirm shares are falling more than 11% in premarket trading but have surged around 30% in the past 12 months through Friday.
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