Klarna has scored a deal to make them the exclusive provider of buy now, pay later loans for United States retail chain Walmart.
The move was a key victory for the Swedish company, taking the coveted partnership away from rival Affirm, ahead of its public launch in the U.S. where it will be listed on the New York Stock Exchange.
Affirm shares fell by 4.2% Monday but declined as much as 14% earlier in trading.
Affirm and Klarna are both key players in the buy now pay later sector, with Klarna focusing on a more global audience while Affirm has a view on home soil in the U.S.
Walmart customers will be able to receive the loans from Klarna in stores and online via Klarna's majority-owned OnePay, which will reportedly handle the user experience via its app, with Klarna will make final decisions for loans.
These can range from three months to 36 months in length with annual interest rates between 10% to 36%.
It is expected to be launched in the next few weeks and in place across all Walmart channels by the time the holiday season rolls around later on this year.
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