Swedish Fintech Firm Klarna to Be Exclusive Provider of Buy Now, Pay Later Loans for Walmart

Swedish fintech firm Klarna will be the exclusive provider of buy now, pay later loans for Walmart, taking a coveted partnership away from rival Affirm, CNBC has learned. The deal comes at an opportune time for Klarna as it readies one of the year’s most highly anticipated initial public offerings.

According to people with knowledge of the situation, Klarna will provide loans to Walmart customers in stores and online through the retailer’s majority-owned fintech startup OnePay. OnePay will handle the user experience via its app, while Klarna will make underwriting decisions for loans ranging from three months to 36 months in length, and with annual interest rates from 10% to 36%.

The new product will be launched in the coming weeks and will be scaled to all Walmart channels by the holiday season, likely leaving it the retailer’s only buy now, pay later option by year-end.

Deal Sweetener

The deal is a "game changer" for Klarna, according to CEO Sebastian Siemiatkowski, who has worked to improve the company’s prospects, including touting its use of generative AI to slash expenses and headcount. The company returned to profitability in 2023, and its valuation is now roughly $15 billion, according to analysts, nearly matching the public market value of Affirm.

Everything App

The deal is no less consequential to Walmart’s OnePay, which has surged to a $2.5 billion pre-money valuation just two years after rolling out a suite of products to its customers. The startup now has more than 3 million active customers and is generating revenue at an annual run rate of more than $200 million.

Conclusion

Klarna’s partnership with OnePay is a significant win for the Swedish fintech firm, which is poised to become the exclusive provider of buy now, pay later loans for Walmart. The deal comes at a time when Klarna is preparing to go public, and the company’s valuation is likely to benefit from the partnership. For Affirm, the move is likely to be seen as a blow at a time when tech stocks are particularly vulnerable.

Frequently Asked Questions

Q: What is the nature of the partnership between Klarna and OnePay?
A: Klarna will provide loans to Walmart customers in stores and online through OnePay’s app, while OnePay will handle the user experience and Klarna will make underwriting decisions for loans.

Q: How long will the loans offered by Klarna through OnePay range in length?
A: The loans will range from three months to 36 months in length.

Q: What is the interest rate range for the loans offered by Klarna through OnePay?
A: The annual interest rates will range from 10% to 36%.

Q: When will the new product be launched?
A: The new product will be launched in the coming weeks and will be scaled to all Walmart channels by the holiday season.

Global Labor Movement Updates

As the world becomes increasingly interconnected, the global labor movement is witnessing a surge in protests and strikes against corporate giants. From Bangladesh to the United States, workers are rising up against exploitation, demanding better wages, safer working conditions, and an end to labor rights abuses. But behind the scenes, corporations are using every trick in the book to maintain their grip on global supply chains. It’s time to shed light on the dark side of globalization and expose the ways in which corporations exploit workers worldwide.

The Rise of Global Supply Chains

In the past few decades, corporations have leveraged globalization to set up complex supply chains that span the globe. This has enabled them to source raw materials and components at rock-bottom prices, pass the cost savings on to consumers, and reap massive profits. However, this strategy has come at a steep cost: the exploitation of workers in developing countries.

The Bangladesh Labor Crisis

In 2013, the garment industry in Bangladesh was rocked by a devastating fire that killed 112 workers at the Tazreen Fashion factory in Dhaka. The tragedy sparked widespread outrage and calls for greater labor protections. However, little has changed since then. Reports of poor working conditions, long hours, and meager wages continue to emerge from Bangladesh’s garment sector. The country’s labor laws are weak, and the government is often complicit in allowing corporations to flout regulations.

The Exploitation of Migrant Workers

Migrant workers, in particular, are vulnerable to exploitation. Thousands of workers from countries like Nepal, India, and the Philippines travel to countries like the Middle East and South Asia to find work. However, they often end up in abusive conditions, with little recourse for redress. The exploitation of migrant workers is a lucrative business, with some employers paying workers as little as $3 per day.

The Case of the Malaysian Rubber Glove Industry

In 2019, a report by the International Labor Rights Forum exposed the squalid conditions in Malaysia’s rubber glove industry. Workers toiled for up to 12 hours a day, seven days a week, earning as little as $2.50 per day. The report also highlighted the widespread use of debt bondage, where workers are forced to work to pay off exorbitant fees to recruitment agencies. The Malaysian government has taken some steps to address the issue, but much remains to be done.

The Politics of Exploitation

Corporations have a significant amount of power and influence over governments, which often proves to be a major obstacle in the fight for workers’ rights. Governments are lobbied heavily by corporations to keep labor laws weak and enforcement lax. This allows corporations to maintain their grip on global supply chains, even in the face of growing public pressure.

The Role of Trade Agreements

Trade agreements like the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP) are designed to promote free trade and reduce tariffs. However, they also contain provisions that limit the ability of governments to regulate corporations and protect workers’ rights. This has led to widespread criticism from labor unions and human rights groups, who argue that these agreements will only serve to further entrench corporate power.

Conclusion

The exploitation of workers is a global problem that requires a global response. It’s time for corporations to recognize that their actions have consequences and that the exploitation of workers is never justified. Governments must also take a more active role in regulating corporations and protecting workers’ rights. As the global labor movement continues to grow, it’s crucial that we stay informed and demand change. The future of work depends on it.

FAQs

What can I do to help?

* Support labor unions and organizations that advocate for workers’ rights
* Boycott companies that engage in exploitative practices
* Demand that your government holds corporations accountable for labor abuses
* Educate yourself and others about the issue of worker exploitation

What are some examples of companies that exploit workers?

* H&M, Gap, and other major fashion brands that source supplies from Bangladesh and other countries with poor labor standards
* Apple and other tech companies that use migrant workers in their supply chains
* Companies like Nike and Reebok that have been criticized for their treatment of workers in countries like Indonesia and Vietnam

How can I support workers’ rights?

* Contact your local representatives and demand action on worker exploitation
* Support organizations that advocate for workers’ rights, such as the International Labor Rights Forum
* Share information and stories about worker exploitation on social media to raise awareness
* Participate in labor protests and strikes to show solidarity with workers fighting for their rights

What are some success stories of workers’ rights movements?

* The Fight for $15 movement, which has seen significant gains in the United States
* The garment workers’ movement in Bangladesh, which has led to improved working conditions and better wages
* The international campaign to end child labor, which has led to significant reductions in the number of child workers worldwide

Comcast and International Olympic Committee Announce New Deal

The International Olympic Committee (IOC) and Comcast have agreed on a new deal that expands the company’s broadcast reach and extends its media rights for the Olympic Games through 2036. The agreement, valued at around $3 billion, elevates Comcast from a media rights holder to a "strategic partner."

Partnership Details

The new deal allows Comcast to broadcast the 2034 Winter Olympics in Salt Lake City and the 2036 Summer Olympics in a not-yet-determined city. The agreement also grants Comcast the rights to broadcast the Olympics on its Peacock streaming service. The company will also work with the IOC to develop broadcast infrastructure, in-venue distribution, and U.S. digital advertising.

IOC President’s Statement

IOC President Thomas Bach praised the agreement, saying, "This agreement with Comcast is groundbreaking because it goes far beyond the traditional media rights agreement which we have had for many years with our valued partner. The media landscape is evolving rapidly, and, by partnering with one of the world’s leading media and technology companies, we will ensure that fans in the United States are able to experience the Olympic Games like never before."

Comcast’s Vision

Comcast Chairman and CEO Brian Roberts emphasized the importance of technology in the deal, saying, "We live in a time when technology is driving faster and more fundamental transformation than we’ve seen in decades. This groundbreaking, new, long-term partnership between Comcast NBCUniversal and the International Olympic Committee not only recognizes this dynamic but anticipates that it will accelerate."

Peacock’s Role

The deal is part of Comcast’s efforts to use live sports to drive subscriptions to its Peacock streaming service. NBC will spend around $2.5 billion per year to carry a package of NBA games starting next season.

Olympics Viewership

During last year’s Summer Olympics in Paris, the push toward Olympics coverage on Peacock appeared to pay off for the company. Over 30 million people watched the Olympics on NBC’s television and streaming platforms, and advertising revenue came in at a record $1.2 billion.

Conclusion

The new deal between Comcast and the IOC marks a significant milestone in the evolution of Olympic broadcasting. With its expanded reach and extended media rights, Comcast is poised to bring the Olympic Games to a wider audience than ever before.

FAQs

Q: What is the value of the new deal?
A: The deal is valued at around $3 billion.

Q: What are the key terms of the agreement?
A: The agreement grants Comcast the rights to broadcast the 2034 Winter Olympics in Salt Lake City and the 2036 Summer Olympics in a not-yet-determined city. Comcast will also work with the IOC to develop broadcast infrastructure, in-venue distribution, and U.S. digital advertising.

Q: How will Comcast use the Olympics to drive subscriptions to its Peacock streaming service?
A: Comcast will use live sports, including the Olympics, to drive subscriptions to Peacock. NBC will spend around $2.5 billion per year to carry a package of NBA games starting next season.