Affirm shares plunged after it was announced the company’s rival Klarna has secured a significant partnership with Walmart, replacing Affirm as the retail giant’s exclusive buy now, pay later provider.
Klarna will partner with OnePay, a Walmart-backed consumer finance app, to offer installment loans for purchases at Walmart stores and online platforms in the US.
It will provide loans ranging from three months to 36 months.
“OnePay choosing Klarna as their exclusive installment loans partner at Walmart in the US is a huge vote of confidence as we pursue our goal of being available everywhere for everything,” Klarna CEO Sebastian Siemiatkowski said in a statement.
Affirm shares were down 12.2% at about $44 in early trade on Monday on the news.
The announcement comes as Sweden-headquartered Klarna is preparing for its initial public offering in the US. The company plans to debut on the New York Stock Exchange under the ticker symbol “KLAR,” per its IPO prospectus filed on Friday.