Walmart(WMT) CNBC·2025-03-17 11:14Core Insights - Klarna has secured an exclusive partnership with Walmart to provide buy now, pay later (BNPL) loans, taking this opportunity from its competitor Affirm [1][3] - The partnership will utilize Walmart's fintech startup OnePay for user experience, while Klarna will manage loan underwriting with terms ranging from 3 to 36 months and interest rates between 10% and 36% [2] - This collaboration is set to launch in the coming weeks and aims to be the sole BNPL option for Walmart by the end of the year [2] Company Developments - Klarna is preparing for a highly-anticipated IPO in the U.S., following a significant drop in its private market valuation from 15 billion in 2023 [4][5] - The company has returned to profitability in 2023 and is leveraging generative AI to reduce costs and workforce [5] - Affirm, on the other hand, has seen its stock decline by 18% this year, and the loss of the Walmart partnership is viewed as a setback for the company [6] Competitive Landscape - The partnership intensifies the competition between Klarna and Affirm, with Klarna having a more global reach compared to Affirm's U.S.-centric focus [3] - Affirm has emphasized its partnerships with major retailers as crucial for driving purchase volumes, with Walmart previously being one of its key partnerships [7]