Walmart Overhauls Checkout Experience With BNPL Shift and Real-Time Payments Push

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Walmart is reshaping its checkout landscape through two major initiatives: replacing its Buy Now, Pay Later (BNPL) partner and accelerating adoption of real-time bank payments, signaling a strategic pivot toward fee reduction and enhanced financial flexibility for customers.

BNPL Partnership Swap: Affirm Out, Klarna In

Walmart announced on March 17, 2025, that it will phase out Affirm as its BNPL provider in favor of Klarna, a Swedish fintech giant.

The transition, set to conclude by the 2025 holiday season, marks a significant shift for the retailer’s installment payment offerings.

• Terms: Klarna will offer plans spanning 3 to 36 months, targeting high-ticket purchases like electronics and furniture.

• Impact: Affirm previously contributed ~2% of Walmart’s adjusted operating income, highlighting the retailer’s reliance on BNPL for large transactions.

• CEO Perspective: Klarna’s Sebastian Siemiatkowski hailed the deal as a “game changer,” emphasizing its role in redefining checkout experiences.

Real-Time Payments: Cutting Out Card Networks

Walmart is expanding its pay-by-bank option via partnerships with The Clearing House’s RTP network and the Federal Reserve’s FedNow, aiming to bypass interchange fees from Visa and Mastercard.

• Speed and Savings: The service, integrated into Walmart Pay, enables same-day fund availability for retailers, reducing reliance on card networks. Analysts estimate this could save Walmart millions daily in avoided fees.

• Consumer Benefits: Real-time payments mitigate overdraft risks tied to delayed transactions, though adoption may hinge on incentives like discounts or rebates.

• Industry Ripple Effects: Smaller banks and credit unions face pressure to adopt instant payments to retain customers, as Walmart’s scale amplifies demand.

Store Experience Overhaul

Parallel to payment changes, Walmart is investing $9 billion in store remodels and tech upgrades, including:

• Sustainability: Energy-efficient lighting and waste-reduction initiatives.

• Navigation Tools: Digital maps and inventory trackers to streamline shopping.

• Expansion: Plans to build or convert 150+ stores over five years, enhancing accessibility and efficiency.

Why It Matters
Walmart’s dual focus on BNPL flexibility and fee-free payments underscores its push to dominate both checkout convenience and cost efficiency.

While Klarna’s installment plans cater to budget-conscious shoppers, real-time payments position Walmart as a leader in reducing transactional friction—a move likely to pressure competitors and reshape retail payment norms.

For updates on Walmart’s evolving checkout systems, visit Walmart’s official announcements.

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