Upcoming Walmart Credit Card Installment Loans

Walmart may soon offer its customers a new payment option, thanks to a potential deal between the retailer and the finance company Affirm, Inc. Sources close to the situation said the the Wall Street newspaper that Affirm executives discuss with the Walmart team the possibility of offering installment loans to customers for certain physical purchases and on Walmart.com.

The deal, which could roll out to test markets as early as this fall, would allow Affirm to provide installment loans for more expensive Walmart products, especially those priced above $ 200, the sources said. WSJ. If implemented, installment loans would give Walmart customers a new way to make payments over time, in addition to the existing option of Walmart-branded credit cards.

Walmart credit cards were issued exclusively by Synchrony Financial since 2000.

While Walmart credit cards typically offer annual percentage rates (APRs) varying between 17.9% and 23.9%, Affirm offers installment loans with fixed APRs between 10% and 30%, which can vary depending on the applicant’s credit rating. Additionally, Affirm isn’t known to charge late fees, while Synchrony’s Walmart Cards charge up to $ 38 for late payments.

As Affirm is more likely to extend credit to customers with limited credit histories, a deal with the company could allow Walmart to earn business from consumers who are unable to qualify for Walmart credit cards. issued by Synchrony. This could potentially boost sales for the retailer, which has seen same-store sales growth in the United States for the past 12 consecutive quarters. Walmart continues to innovate in an attempt to escape competition from its biggest rival, the e-commerce giant Amazon.

Affirm, which already offers financing to consumers who purchase products from an online retailer Wayfair, is led by computer scientist and internet entrepreneur Max Levchin, one of the original co-founders of the online payment company Pay Pal.



About the study: The AI ​​In Focus: The Bank Technology Roadmap is a research and interview report examining how banks are using artificial intelligence and other advanced IT systems to improve credit risk management and other aspects of their operations. The Playbook is based on a survey of 100 banking executives and is part of a larger series assessing the potential of AI in finance, healthcare and others.

About Catherine Wilson

Check Also

Barbara J. Wolf named CEO of SAIL Loans and Affiliates

CHICAGO, IL, Oct. 28, 2022 /24-7PressRelease/ — Barbara J. Wolf has been named Managing Director …

Leave a Reply

Your email address will not be published.