By Dominic Chopping and Adriano Marchese

STOCKHOLM--Klarna will become the exclusive buy-now-pay-later provider at Walmart in the U.S., replacing rival Affirm as the Swedish fintech company nears a potential initial public offering.

Stockholm-based Klarna said Monday that it will work with Walmart-backed consumer finance app OnePay to offer customers installment loans on purchases at the retailer. It will give Walmart's U.S. customers and members flexible payment options for online and in-store purchases.

OnePay offers financial services and allows customers to link their bank cards and quickly check out online or make contactless payments while also offering cash back on purchases. It is already integrated inside of Walmart's physical and digital channels and with the Klarna partnership will now add installment loans to its portfolio of banking, credit and payments products.

Once approved for installment loans, Walmart's U.S. customers will be able to choose from a range of repayment terms, from three to 36 months, and can manage their loans in the OnePay app.

Walmart first partnered with Affirm to offer installment payments on big-ticket purchases in-store and online in 2019, later expanding the service to offer buy-now-pay-later on smaller purchases at Walmart self-checkout kiosks in 2023.

An Affirm spokesperson said Monday that during the second half of last year, purchases made through its integrated program with Walmart represented about 5% of its gross merchandise volume, or the total number of transactions on its platform, and about 2% of adjusted operating income.

The spokesperson added that Affirm will continue to compete based on its products and enter into sustainable partnerships.

Affirm shares fell more than 10% in early trading Monday, though the stock is still up by roughly a third over the last year.

Klarna last week filed for an IPO listing on the New York Stock Exchange, although details around the number of shares to be offered and pricing has not yet been announced.

The company reported a valuation as high as $45.6 billion in 2021, while a July 2022 funding round was completed at a $6.7 billion valuation.

Write to Dominic Chopping at dominic.chopping@wsj.com and Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

March 17, 2025 10:59 ET (14:59 GMT)

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