American retailer Walmart Inc. and trading company Robinhood Markets, Inc. investor Ribbit Capital will establish a new financial technology company.
The new company doesn't have a name but Walmart said it would provide "unique and affordable" financial products.
Walmart said services will be available to its employees and customers. The company didn't say when the company would be established or when its services would be available.
Walmart's share prices rose up to 1.5% after it announced the partnership. The paper is expected to rise another 1.31% at the New York Stock Exchange open Tuesday. The stock closed at $147.29 a share Monday.
"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," the company said.
Walmart currently offers limited financial services to customers through Walmart MoneyCard prepaid debit card. The company has a partnership with consumer finance company Affirm to allow customers to buy items and pay in installments.
The new financial technology startup will be majority-owned by Walmart. The company said several of its top executives will become board members - including chief financial officer Brett Biggs and its U.S. chief executive John Furner.
The executives will be joined by other independent financial technology industry veterans. Walmart said it may also buy or partner with other financial technology companies.
Ribbit Capital's current portfolio includes investments in startups such as Affirm, Credit Karma and Robinhood.
Walmart has access to millions of potential customers from its more than 4,700 stores across the country. This includes those who have never had a bank account or access to a financial adviser.
According to the Federal Reserve, around 6% of American adults currently don't have a checking, bank or money market account. Around 16% are considered "underbanked" - which means they don't have access to alternative financial products such as money orders or online payments.
