One, a startup backed by Walmart, has entered the Buy Now, Pay Later (BNPL) sector, putting it in direct competition with firms like Affirm. In doing so, Walmart is utilizing the growing trend of flexible payment options to attract more customers.
This means more competition for established companies in this sector as it continues to fill with new players. This move could disrupt Walmart’s relationships with Affirm and Capital One, its sole provider of installment loans since 2019.
The disruption is not just limited to Affirm and Capital One. This move has initiated a power struggle in the retail and e-commerce domains, which Walmart previously controlled in the United States.
The move challenges Amazon’s substantial presence in the global e-commerce landscape. One’s innovative business model has the potential to revolutionize traditional commerce and payment systems and place the startup as a disruptor in the highly competitive world of digital finance.
One’s entry into the lending market could also challenge fintech firms, credit card companies, and traditional banks.
Walmart-backed One Challenges BNPL market
The platforms could face tough competition from One’s technologically advanced and user-friendly platform.
Traditional banking institutions could face shaky ground as they garner more trust and credibility with their transparent fee structure and efficient services.
One aims to become a comprehensive financial super-app — offering a single platform for saving, spending, and borrowing money. They intend to revolutionize traditional finance notions and transform how people interact with their finances.
Since its establishment in 2021, One has gained attention from influential individuals in the financial world. In 2022, it launched its debut product, a debit account targeted at high-end products. By 2024, One had become a significant player in the BNPL sector. The company’s continuous innovative approach signifies its future growth in the financial world.
