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    Tesla’s China rival Zeekr to roll out advanced driver assistance-system for free

    Chinese electric car company Zeekr is releasing advanced driver-assistance capabilities to its local customers for free as competition heats up, Zeekr CEO Andy An told CNBC ahead of a launch event Tuesday.
    It’s the latest Chinese electric vehicle brand to upgrade its driver-assistance products as Tesla tries to attract more buyers of its own version, called Full Self Driving, in China.
    Over the last two years, driver assistance has increasingly become a selling point for new energy vehicles in China, which include battery-only and hybrid-powered cars.

    The view from inside a Zeekr Mix electric vehicle at one of the company’s showrooms in Shanghai, China, on March 16, 2025.
    Bloomberg | Bloomberg | Getty Images

    BEIJING — Chinese electric car company Zeekr is releasing advanced driver-assistance capabilities to its local customers for free as competition heats up, Zeekr CEO Andy An told CNBC ahead of a launch event Tuesday.
    The tech enables the car to drive nearly autonomously from one pre-set destination to another, as long as drivers keep their hands on the steering wheel and there is regulatory approval — which is increasingly the case in most major Chinese cities.

    It’s the latest Chinese electric vehicle brand to upgrade its driver-assistance products as Tesla tries to attract more buyers of its own version, called Full Self Driving, in China.
    After initial criticism that the 64,000 yuan ($8,850) software was too expensive, some Chinese social media users said Monday that Tesla was offering some users the driver-assistance system for free through April 16. Tesla did not immediately respond to a request for comment.
    Zeekr’s version will be free, rolled out to a pilot group initially and then released to the public in April, according to the company.
    “Right now, in this period of development, I think subscriptions aren’t that meaningful,” CEO An said in an interview Friday, according to a CNBC translation of his Mandarin-language remarks.
    Given intense competition, he said, Zeekr needs to close the gap on driver assistance with market leaders and become a top player. “So we need to bear some cost,” An said, noting Zeekr previously only offered more basic driver-assistance capabilities, such as for parking.

    Zeekr, which is listed in the U.S., is scheduled to release quarterly earnings on Thursday ahead of the U.S. market open. Shares are up about 6% year-to-date.

    Nvidia chips

    CEO An said that Zeekr’s driver-assistance system uses two Nvidia Orin X chipsets and one lidar, or a light detection and ranging unit that allows a vehicle to navigate roads without relying too much on sunlight conditions.
    He said a forthcoming version of the system will use Nvidia’s more advanced Thor automotive chip, one long-range lidar and four shorter-range lidar units.
    “Using lidar may increase cost, but this reflects how much we value safety,” An said. He said the driver-assistance system for Zeekr cars sold overseas will not use the Nvidia chips for now, given different regulations and local market demand.
    Zeekr’s driver-assistance system will also be used for fellow EV brand Lynk & Co.’s cars, An said, and potentially vehicles from parent company Geely. Zeekr officially acquired Lynk & Co. this year.

    From price war to driver-assistance competition

    Sales of Nvidia’s “self-driving platforms” helped drive the chipmaker’s revenue from automotive and robotics to a record $570 million in the fourth quarter of the 2025 fiscal year.
    Also reflecting market demand, major lidar producer Hesai said this month that its lidar shipments have more than doubled annually for four straight years as of 2024.
    Hesai’s CFO Andrew Fan told CNBC last week that the company expects significant growth in advanced driver-assistance systems this year from last year, and noted an industry joke that China’s electric car market has shifted from a price war to a war over driver assistance.
    Over the last two years, the technology has increasingly become a selling point for new energy vehicles in China, which include battery-only and hybrid-powered cars.
    NEV giant BYD in February announced it was rolling out driver-assist capabilities to more than 20 of its car models. While current features mostly focus on parking and highway navigation, the company said an upgrade with point-to-point driver assistance would likely be issued by the end of 2025.
    The most basic version of BYD’s driver-assistance system uses Horizon Robotics’ chipset along with Nvidia’s Orin, while more advanced versions only use other Nvidia chips, according to Nomura’s research.
    Chinese EV startup Xpeng, another Nvidia customer which made advanced driver assistance an early selling point, has delivered more than 30,000 cars a month since November, thanks in part to its new P7+ car that also did away with requiring additional subscriptions for driver assistance.
    Nio has advertised subscriptions for its driver-assistance features but has yet to charge users for them, according to the company. More

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    Cadillac expects one of every three vehicle sales to be EVs in 2025

    Cadillac expects between 30% and 35% of its U.S. sales this year to be EVs, as the automaker continues to expand its lineup despite industrywide slower-than-expected adoption.
    The General Motors luxury brand is expected to offer five EVs by the end of this year, including its recently launched Escalade IQ and Optiq entry-level crossover.
    Cadillac’s U.S. sales last year increased 8.8%, led by more than tripling sales of the Lyriq, which first went on sale in late 2022.

    2025 Cadillac Escalade IQ
    Michael Wayland / CNBC

    SAN FRANCISCO — Cadillac expects roughly one of every three vehicles it sells in the U.S. this year to be all-electric models, as the automaker continues to expand its EV lineup despite industrywide slower-than-expected adoption of the vehicles.
    The General Motors luxury brand is expected to offer five electric vehicles by the end of this year, including its recently launched Escalade IQ and Optiq entry-level crossover. They join the Cadillac Lyriq, which will be followed later in the year by the three-row Vistiq crossover and the bespoke, $300,000-plus Celestiq car.

    “The momentum is really there,” Brad Franz, Cadillac’s director of marketing, told CNBC. “We’re going to ride that momentum and we’re not launching the vehicles to redistribute the business among [internal combustion engines] and EV portfolio. It’s to grow the business.”

    Read more CNBC auto news

    Cadillac is targeting EVs to make up between 30% and 35% of its total domestic sales in 2025, Franz said. That would be a notable increase from 18% of U.S. sales, or 29,072 vehicles, in 2024.
    EVs represented 8.1% of the roughly 16 million vehicles sold last year in the U.S., according to Cox Automotive. That was lower than the 10% analysts expected to begin the year.
    The additional EVs and expected sales increase follow Cadillac walking back plans to exclusively offer all-electric vehicles by 2030. Instead, the company said the elimination of gas-powered vehicles will be determined by customer demand, but that it would still offer a full lineup of EVs.

    Cadillac Optiq crossover
    Michael Wayland / CNBC

    Cadillac is one of several brands to abandon plans to exclusively sell EVs in the years to come, as consumer adoption of the vehicles has not occurred as quickly as previously expected. There’s also increasing concern for EV sales amid President Donald Trump’s lack of federal support for the vehicles.

    “Our EV portfolio will complement our gas power side of the portfolio and bring new customers to the brand,” Franz said during a media event to launch the Escalade IQ and Optiq. “It’s our commitment to choice and offering those customers choice.”
    Cadillac’s U.S. sales last year increased 8.8%, led by more than tripling sales of the Lyriq, which first went on sale in late 2022.

    The Escalade IQ, including a larger “L” version, and Optiq are important new “bookend” vehicles for the carmaker, which aims to be the top-selling luxury EV brand in the country. The company does not include Tesla, which is the top-selling EV brand in the U.S. and has some vehicles at similar price points to Cadillac, in its definition of “luxury.”
    “Optiq and Escalade IQ are going to ramp up very fast,” Franz said. “We’re taking everything that Escalade means today in the marketplace and now offering it as an EV halo that customers will recognize and trust.”
    The Escalade IQ, starting at roughly $130,000, is the largest all-electric SUV offered by any automaker. It is set to test the large SUV market for EVs, while expanding the lineup of Cadillac’s best-known and highly profitable vehicle. The vehicle features similar design cues to Cadillac’s other EVs, as well as the gas-powered Escalade.
    The Optiq will act as the “gateway” entry-level EV, starting at about $55,000 — roughly $4,000 less than the larger Lyriq. It enters an increasingly competitive electric crossover segment, which is currently led by the Lyriq.

    Interior of the 2025 Cadillac Optiq with GM’s Super Cruise hands-free driver-assistance system.

    The Optiq will also debut a new partnership with Dolby Laboratories for the audio company’s “Atmos,” a surround sound technology that initially debuted for theaters. The system will grow across Cadillac’s lineup.
    Cadillac expects the Lyriq — produced in Tennessee — to continue to be its top-selling EV despite the Optiq being less expensive, Franz said.
    The Optiq is being produced at one of GM’s plants in Mexico. Franz declined to comment on how potential 25% tariffs being threatened by Trump on vehicles from Mexico are expected to impact the vehicle’s sales.

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    Wholesale egg prices have ‘plunged,’ analyst says — shoppers may soon see some relief

    Wholesale egg prices have fallen more than 40% since the end of February.
    The pullback comes amid a reprieve from major bird flu outbreaks so far in March and weaker consumer demand, which have helped the nation’s egg supply to start recovering.
    Retail egg prices broke a record high in February. It’s unclear how rapidly, and how much, they will drop.

    A shopper looks at eggs for sale in a grocery store in the Manhattan borough of New York City, Feb. 25, 2025.
    Spencer Platt | Getty Images News | Getty Images

    Wholesale egg prices have fallen significantly in recent weeks, a dynamic that may soon offer relief for consumers shell-shocked by record-high prices at the grocery store this year.
    How quickly — and how much — retail prices will fall is unclear, however, experts said.

    Wholesale prices dropped to $4.83 per dozen Friday, a 44% decline from their peak of $8.58 per dozen on Feb. 28, according to Expana, which tracks agricultural commodity prices.
    The pullback comes amid a reprieve from major bird flu outbreaks so far in March and weaker consumer demand, which have helped the nation’s egg supply to start recovering, according to a U.S. Department of Agriculture market analysis published Friday.
    Prices have “plunged,” said Karyn Rispoli, an egg market analyst and managing editor at Expana.
    Market dynamics are also putting “extreme pressure” on wholesale prices to fall further, Rispoli wrote in an e-mail.

    Retail prices hit record high

    Consumers paid $5.90 for a dozen large grade-A eggs, on average, in February, a record high, according to U.S. Bureau of Labor Statistics data. Retail prices have blown past their prior record — $4.82 per dozen in January 2023 — and have nearly doubled from a year ago.

    Prices had surged amid a deadly outbreak of bird flu in the U.S., which has killed millions of egg-laying chickens and crimped egg supply, according to agricultural economists and market experts. The U.S. Department of Justice also opened an antitrust investigation into the pricing and supply practices of major producers.
    However, bird flu outbreaks seem to have tapered off in March, at least for now.
    “Slowing [bird flu] outbreaks are leading to improved supply availability and wholesale market prices have responded with sharp declines over the past week,” the USDA wrote.
    More from Personal Finance:Consumer outlook sinks as recession fears take holdHere’s the inflation breakdown for February 2025This step is ‘really important’ for home sellers in 2025
    Consumers, dissuaded by high prices and purchase restrictions imposed by many grocers, have also been buying fewer eggs, helping to ease supply shortfalls, Rispoli said.
    Households also stockpiled eggs because they feared prices would keep climbing — a flashback of sorts to consumer behavior witnessed in the early days of the Covid-19 pandemic — meaning there isn’t an immediate need for them to replenish supply, she added.

    Consumers still ‘feeling the peak market’

    While there have been some early signs of easing prices, it’s unclear how rapidly — and to what extent — consumers may get more relief, experts said.
    For one, there’s generally a lag of at least two to three weeks between a change in wholesale costs and subsequent retail pricing — meaning consumers are still largely “feeling the peak market when they go to buy eggs,” Rispoli said.
    Plus, retailers ultimately choose “how closely they want to track wholesale prices,” she said.

    Egg demand is also likely to stay elevated as the Easter holiday, which falls on April 20 this year, approaches, according to Kevin Bergquist, an egg analyst at the Wells Fargo Agri-Food Institute.
    “Egg prices will likely remain highly variable for the near future, but at a higher-than-usual level,” Bergquist wrote in a March market update. “In the short term, we will likely see a continuation of high egg prices.”

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    Can anything get China’s shoppers to spend?

    Installing more lifts in multi-storey buildings, extending the hours of children’s clinics during flu season, encouraging foreign direct investment in camping. These are some of the ideas sprinkled throughout China’s “special action plan” to boost consumption, which was published on March 16th, a Sunday, thus extending the hours of China’s journalists. More

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    Forever 21 expected to close all U.S. stores, blames Shein and Temu for demise

    Forever 21 filed for bankruptcy protection for a second time and is expected to close all U.S. stores, after it faced steep competition from Chinese-founded e-tailers like Shein and Temu.
    The fast-fashion retailer has already started going out of business sales at more than 350 locations, but is still holding out hope a buyer could materialize and take over operations.
    The operating company’s U.S. business is headed for outright liquidation, but the brand name will live on under its owner, Authentic Brands Group.

    Shoppers enter a Forever 21 fashion retail store at the King of Prussia mall in King of Prussia, Pennsylvania, U.S. September 30, 2019.
    Mark Makela | Reuters

    Forever 21 filed for bankruptcy protection for the second time in six years on Sunday and blamed fast-fashion e-tailers Shein and Temu for its demise. 
    The retailer’s operating company is expected to cease all operations in the U.S. and has already begun liquidation sales at its more than 350 locations, but it’s still open for bids if a buyer is willing to take on its inventory and keep running its stores, court filings show. 

    Forever 21 has been seeking a buyer for several months and made contact with more than 200 potential bidders, 30 of which signed confidentiality agreements, but no viable deal has come together, court papers say. CNBC previously reported the operating company was in talks with liquidators and would have a hard time finding a buyer for its business.
    The company’s bankruptcy comes six years after it emerged from its first filing only to face the Covid-19 pandemic, the highest inflation in decades, and new competition from Chinese-founded upstarts like Shein and Temu. 
    In a court filing, Stephen Coulombe, the operating company’s co-chief restructuring officer, said Forever 21 was “materially and negatively impacted” by Shein and Temu’s use of the de minimis exemption, which “undercut” its business. The exemption is a trade law loophole that has historically allowed goods valued under $800 to be shipped into the U.S. without import duties. President Donald Trump is trying to end it.
    “Certain non-U.S. online retailers that compete with the Debtors, such as Temu and Shein, have taken advantage of this exemption and, therefore, have been able to pass significant savings onto consumers,” Coulombe wrote. “Consequently, retailers that must pay duties and tariffs to purchase product for their stores and warehouses in the United States, such as the Company, have been undercut.”
    “Despite wide-spread calls from U.S. companies and industry groups for the U.S. government to create a level playing field for U.S. retailers by closing the exemption, U.S. laws and policies have not solved the problem,” he added.

    The owner of Forever 21′s operating company, Sparc Group, which recently reorganized to form a new company dubbed Catalyst Brands, tried to counteract Shein’s competitive threat in 2023 by partnering with the upstart. But the deal didn’t do enough to stem the company’s losses or lead to any changes in de minimis rules, said Coulombe.
    “The ability for non-U.S. retailers to sell their products at drastically lower prices to U.S. consumers has significantly impacted the Company’s ability to retain its traditional core customer base,” wrote Coulombe. 
    While Forever 21’s operating company is headed toward outright liquidation in the U.S., it doesn’t mean that the brand will cease to exist. Its international stores and website are expected to keep operating, and its brand name and other intellectual property owned by brand management firm Authentic Brands Group are not up for sale, CNBC previously reported. 
    The firm could still find new operators that are willing to run the business in the U.S., either now or in the future. 
    “We are receiving lots of interest from strong brand operators and digital experts who share our vision and are ready to take the brand to the next level,” Jarrod Weber, global president of lifestyle at Authentic Brands Group, said in a statement. “Our U.S. licensee’s decision to restructure its operations does not impact Forever 21’s intellectual property or its international business. It presents an opportunity to accelerate the modernization of the brand’s distribution model, setting it up to compete and lead in fast fashion for decades to come.”
    After its first bankruptcy filing, Forever 21 enjoyed a period of respite where the business performed well. It had been bought by a consortium including Authentic Brands Group and landlords Simon Property Group and Brookfield Property Partners and had new capital and a trimmed down store fleet.
    In fiscal 2021, it generated $2 billion in revenue and $165 million in EBITDA. But as competition and inflation increased, compounded by supply chain challenges and shifting consumer preferences, Forever 21’s performance began to sputter. In the last three fiscal years, the company lost more than $400 million, including $150 million in fiscal 2024 alone. The company projects it will lose $180 million in EBITDA through 2025. 
    Last year, Authentic Brands Group CEO Jamie Salter said at a conference that buying the business was “probably the biggest mistake I’ve made.” A few months later, CNBC reported that the company was asking landlords to cut its rent by as much as 50% as it looked to reduce costs and stave off a second bankruptcy filing. While those efforts generated $50 million in savings, it wasn’t enough to counteract the company’s losses.
    The operating company currently owes $1.58 billion in various loans, and more than $100 million to dozens of clothing manufacturers, primarily located in China and Korea.
    Founded in 1984, Forever 21 has long been credited as a leader in the fast-fashion movement. At its peak, the company employed 43,000 people and generated more than $4 billion in annual sales.

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    PepsiCo buys prebiotic soda brand Poppi for nearly $2 billion

    PepsiCo is buying prebiotic soda brand Poppi for $1.95 billion, which includes $300 million of anticipated cash tax benefits.
    Poppi’s founders Allison and Stephen Ellsworth launched the brand back in 2018, the same year that rival Olipop was founded.
    Pepsi’s rival Coca-Cola recently launched its own prebiotic soda brand, called Simply Pop.

    Super Bowl ad of Poppi.
    Source: Poppi

    PepsiCo said Monday that it is buying prebiotic soda brand Poppi for nearly $2 billion.
    While soda consumption has broadly fallen over the last two decades in the U.S., prebiotic sodas, fueled by industry newcomers Poppi and Olipop, have won over health-conscious consumers over the last five years. The category’s growth makes it attractive for Pepsi and its rival, Coca-Cola, which recently launched its own prebiotic soda brand, Simply Pop.

    Pepsi said it plans to acquire the upstart Poppi for $1.95 billion. The deal includes $300 million of anticipated cash tax benefits, making the net purchase price $1.65 billion.
    Pepsi will also have to make additional payments if Poppi achieves certain performance milestones within a set time frame after the acquisition closes.
    Pepsi did not say when the deal is expected to close, pending regulatory approval.
    Poppi’s founders Allison and Stephen Ellsworth launched the brand back in 2018, the same year that Olipop was founded. Poppi’s formula includes apple cider vinegar, prebiotics and just five grams of sugar.
    The company recently made its second straight Super Bowl appearance with an ad during the big game, demonstrating both its deep pockets and a desire to reach an even wider audience.

    But as Poppi’s sales have grown, it has also attracted backlash for its health claims. The company is currently in talks to settle a lawsuit that argued Poppi’s drinks are not as healthy as the company claims, according to court filings.
    For its part, rival Olipop was valued at $1.85 billion during its latest funding round, which was announced in February. In 2023, Olipop founder and CEO Ben Goodwin told CNBC that soda giants PepsiCo and Coca-Cola had already come knocking about a potential sale. More

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    Buffett’s Berkshire hikes stakes in five Japanese trading houses to almost 10% each

    Warren Buffett speaks during the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska, on May 4, 2024.

    Warren Buffett’s love for Japanese stocks grows fonder even as he increasingly sells U.S. equities.
    The 94-year-old investor’s Berkshire Hathaway holding company raised its holdings in five Japanese trading houses —  Itochu, Marubeni, Mitsubishi, Mitsui and Sumitomo — by more than 1 percentage point each, to stakes ranging from 8.5% to 9.8%, according to a regulatory filing.

    The “Oracle of Omaha” said in his 2024 annual letter that Berkshire is committed to its Japanese investments for the long term and has reached an agreement with the companies to go beyond an initial 10% ceiling.
    All five are the biggest “sogo shosha,” or trading houses, in Japan that invest across diverse sectors domestically and abroad — “in a manner somewhat similar to Berkshire itself,” Buffett said. Berkshire first bought into the companies in the summer of 2019. 
    Part of the investment strategy involves Buffett hedging currency risk by selling Japanese debt and then pocketing the difference between dividends from the investments and the bond coupon payments he has to make to service the debt.
    At the end of 2024, the market value of Berkshire’s Japanese holdings came to $23.5 billion, at an aggregate cost of $13.8 billion. The investor praised the companies’ managements, relationships with their investors and their capital deployment strategies. 
    Buffett first unveiled the Japanese positionsd on his 90th birthday in August 2020 after making regular purchases on the Tokyo Stock Exchange, saying he was “confounded” by the opportunity and was attracted to the trading houses’ dividend growth.

    In 2023, Buffett even paid a visit to Japan with his designated successor Greg Abel and met with the heads of the Japanese firms. He said he’d like Berkshire to own the companies forever.
    The student of famed investor Benjamin Graham has been aggressively selling U.S. stocks and growing his record cash pile to $334 billion. Berkshire sold more than $134 billion worth of stocks in 2024, largely by shrinking the size of Berkshire’s two largest equity holdings — Apple and Bank of America. More

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    Klarna, nearing IPO, plucks lucrative Walmart fintech partnership from rival Affirm

    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.
    Klarna, which just disclosed its intention to go public in the U.S., will provide loans to Walmart customers in stores and online through the retailer’s majority-owned fintech startup OnePay, according to people with knowledge of the situation.
    OnePay, which updated its brand name this month, 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.

    Sebastian Siemiatkowski, CEO of Klarna, speaking at a fintech event in London on Monday, April 4, 2022.
    Chris Ratcliffe | Bloomberg via Getty Images

    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.
    Klarna, which just disclosed its intention to go public in the U.S., will provide loans to Walmart customers in stores and online through the retailer’s majority-owned fintech startup OnePay, according to people with knowledge of the situation who declined to be identified speaking about the partnership.

    OnePay, which updated its brand name from One this month, 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%, said the people.
    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.
    The move heightens the rivalry between Affirm and Klarna, two of the world’s biggest BNPL players, just as Klarna is set to go public. Although both companies claim to offer a better alternative for borrowers than credit cards, Affirm is more U.S.-centric and has been public since 2021, while Klarna’s network is more global.
    Shares of Affirm fell 11% in premarket trading Monday.

    Deal sweetener

    The deal comes at an opportune time for Klarna as it readies one of the year’s most highly anticipated initial public offerings. After a dearth of big tech listings in the U.S. since 2021, the Klarna IPO will be a key test for the industry. It’s private market valuation has been a rollercoaster: It soared to $46 billion in 2021, then crashed by 85% the next year amid the broader decline of high-flying fintech firms.

    CEO Sebastian Siemiatkowski has worked to improve Klarna’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.
    The OnePay deal is a “game changer” for Klarna, Siemiatkowski said in a release confirming the pact.
    “Millions of people in the U.S. shop at Walmart every day — and now they can shop smarter with OnePay installment loans powered by Klarna,” he said. “We look forward to helping redefine checkout at the world’s largest retailer — both online and in stores.”
    As part of the deal, OnePay can take a position in Klarna. In its F-1 filing, Klarna said it entered into a “commercial agreement with a global partner” in which it is giving warrants to purchase more than 15 million shares for an average price of $34 each. OnePay is the partner, people with knowledge of the deal confirmed.
    For Affirm, the move is likely to be seen as a blow at a time when tech stocks are particularly vulnerable. Run by CEO Max Levchin, a PayPal co-founder, the company’s stock has surged and fallen since its 2021 IPO. The lender’s shares have dipped 18% this year before Monday.
    Affirm executives frequently mention their partnerships with big merchants as a key driver of purchase volumes and customer acquisition. In November, Affirm chief revenue officer Wayne Pommen referred to Walmart and other tie-ups including those with Amazon, Shopify and Target as its “crown jewel partnerships.”
    An Affirm spokesman declined to comment.

    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.
    As part of its push to penetrate areas adjacent to its core business, Walmart executives have touted OnePay’s potential to become a one-stop shop for Americans underserved by traditional banks.
    Walmart is the world’s largest retailer and says it has 255 million weekly customers, giving the startup — which is a separate company backed by Walmart and Ribbit Capital — a key advantage in acquiring new customers.
    Last year, the Walmart-backed fintech began offering BNPL loans in the aisles and on checkout pages of Walmart, CNBC reported at the time. That led to speculation that it would ultimately displace Affirm, which had been the exclusive provider for BNPL loans for Walmart since 2019.
    OnePay’s move to partner with Klarna rather than going it alone shows the company saw an advantage in going with a seasoned, at-scale provider versus using its own solution.

    The Walmart logo is displayed outside their store near Bloomsburg.
    Paul Weaver | Lightrocket | Getty Images

    OnePay’s push into consumer lending is expected to accelerate its conversion of Walmart customers into fintech app users. Cash-strapped consumers are increasingly relying on loans to meet their needs, and the installment loan is seen as a wedge to also offer users the banking, savings and payments features that OnePay has already built.
    Americans held a record $1.21 trillion in credit card debt in the fourth quarter of last year, about $441 billion higher than balances in 2021, according to Federal Reserve Bank of New York data.
    “It’s never been more important to give consumers simple and convenient ways to access fair credit at the point of sale,” said OnePay CEO Omer Ismail. “That’s especially true for the millions of people who turn to Walmart every week for everything.”
    Next up is likely a OnePay-branded credit card offered with the help of a new banking partner after Walmart successfully exited its partnership with Capital One.
    “We’re looking forward to going down this new path where not only can they provide installment credit … but also revolving credit,” Walmart CFO John David Rainey told investors in June.
    — CNBC’s MacKenzie Sigalos and Melissa Repko contributed to this report. More