Yet to be officially named, the venture will aim to provide customers with "modern, innovative and affordable financial solutions". It did not provide the name of the company but shared that the venture was developed in a strategic partnership with investment firm Ribbit Capital.
The official statement outlined that Walmart will bring retail knowledge to the fintech venture, while Ribbit will help to scale the new business with its financial expertise.
Its board will include John Furner, president and CEO, Walmart U.S., Brett Biggs, evp and CFO, Walmart, and Meyer Malka, managing partner of Ribbit Capital. "And they've made it clear they want more from us in the financial services arena", John Furner, president and CEO, Walmart USA says.
Walmart - which already offfers a number of financial products, including credit cards, cheque cashing, money transfers and installment financing - has yet to give any specific details on its product plans, although partnerships with other fintechs and acquisitions are written into the business blueprint.
Walmart's head-to-head competition with Amazon.com Inc. means it is increasingly growing beyond retail.
"Walmart can benefit from this move into more services and it will be interesting to see the applications that come out of the new startup".
Walmart now offers multiple financial services to its customers.
On Wall Street, Walmart shares rose 1.5% in electronic trading at midnight (Paris time).
The goal of Walmart may be to build an infrastructure like Alibaba has in Asia, where it's both an online retailer and a major financial services provider - all in the same platform.
Walmart has more than 4,700 stores across the country and employs almost 1.5 million in the US alone.