By Emily Dattilo

Shares of Affirm were sinking after fintech peer Klarna announced it will be the sole provider of "buy now, pay later" loans for Walmart in the United States this year.

That's a negative for Affirm, which first announced a partnership with Walmart in 2019. Affirm stock fell 12% to $44.10 in trading Monday.

The Walmart news came after Klarna filed an initial public offering prospectus on Friday. The number of shares to be offered and the price range for the offering have yet to be determined, but the company has applied to list its ordinary shares on the New York Stock Exchange under the symbol "KLAR."

Seaport Research analyst Jeff Cantwell weighed in on possible challenges to the IPO going through. "The market has been very touch-and-go at the moment given tariffs and general concerns about the macro, so we'll have to see what the investor appetite looks like," he told Barron's.

Klarna said Monday it will be teaming up with consumer finance app OnePay to offer BNPL loans at Walmart.

"Walmart U.S. customers will have the option to use OnePay installment loans powered by Klarna to shop for thousands of items, including electronics, home and garden, automotive, and more," Klarna said in a press release. Once approved, customers can choose a range of repayment terms from three to 36 months.

In a securities filing, Affirm said as of Monday that Walmart continues to be an integrated merchant partner of the company.

"We win business when merchants want superior performance and maximum value, given our underwriting and capital markets advantages," Affirm said in an emailed statement to Barron's. "We will continue our long-term strategy of competing on our products and entering into sustainable partnerships."

Write to Emily Dattilo at emily.dattilo@dowjones.com

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March 17, 2025 09:55 ET (13:55 GMT)

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