Walmart (WMT) - Get Walmart Inc. Report said Monday it’s teaming up with Ribbit Capital, a stakeholder in the Robinhood investment platform, on a fintech startup aimed at serving customers and employees.
Walmart will hold a majority stake in the venture, according to a statement released after the close of trading Monday.
The as-yet unnamed company’s board will include John Furner, president and chief executive of Walmart US; Brett Biggs, executive vice president and chief financial officer of parent Walmart; and Meyer Malka, managing partner of Ribbit Capital, according to the statement.
"For years, millions of customers have put their trust in Walmart to not only save them money when they shop with us but help them manage their financial needs. And they’ve made it clear they want more from us in the financial services arena," Furner said in the statement.
"We’re thrilled to work with Ribbit Capital in a new venture to help us deliver innovative and needed options to our customers and associates – with speed and at scale," he added.
Shares of Walmart, the Bentonville, Ark., retail giant, at last check rose $3.25, or 2.2%, to $150.54.
Ribbit is the Palo Alto, Calif., venture-capital firm with stakes in Robinhood, as well as other fintech platforms including Credit Karma and Affirm.
The Robinhood trading platform has surged in popularity over the past year, particularly among younger people new to investing. It’s been credited by some with helping to spur speculative fever in U.S. markets in recent months.
Stocks closed generally lower Monday, as the House of Representatives moved forward with a second impeachment of President Donald Trump, following last week’s failed insurrection at the U.S. Capitol.
Among fintech ETFs, the Global X FinTech ETF FINX fell $1.07, or 2.3%, to $45.82. The Amplify CrowdBureau ETF (LEND) - Get Amplify CrowdBureau Online Lending and Digital Banking ETF Report rose 6.8 cents, or 0.5%, to $14.27.