STOCKHOLM—Klarna said it will become the exclusive buy-now-pay-later provider at Walmart in the U.S., replacing rival Affirm as the Swedish fintech company nears a potential initial public offering.Stockholm-based Klarna said Monday that it will work with Walmart-backed consumer finance app OnePay to offer customers installment loans on purchases at the retailer.

KEY TAKEAWAYS Affirm shares are tumbling Monday after rival Klarna, which is preparing to go public in the U.S., said it is now the exclusive provider of Buy Now, Pay Later loans for Walmart.Klarna said it would be partnering with OnePay to provide Walmart consumers with installment loans.

Shares of Affirm were sinking after fintech peer Klarna announced it will be the sole provider of “buy now, pay later” loans for Walmart in the United States. That’s a negative for Affirm, which first announced a partnership with Walmart in 2019,

Swedish fintech Klarna will become the exclusive buy-now-pay-later provider at Walmart in the U.S., replacing rival Affirm. Shares in Affirm fell 7% in premarket trading. Dig deeper:

AI-powered payments network Klarna (KLAR) is joining forces with consumer finance app OnePay to exclusively provide installment loans for purchases at Walmart (WMT) stores and online in the U.S., it said on Monday.