March 17 (Reuters) - Swedish payments firm Klarna said

on Monday it is partnering with consumer finance app OnePay to

offer installment loans for purchases at retail giant Walmart ( WMT )

in the United States.

Installment loans, a staple of consumer lending, allow

borrowers to repay a fixed amount over a set period, making them

a popular choice for big-ticket purchases such as electronics

and automotives.

Unlike revolving credit, installment loans have fixed

payments and often feature little to no interest, making them a

cheaper alternative to traditional credit cards.

Retailers are increasingly partnering with lenders to offer

installment financing at checkout, in the hopes of boosting

sales by giving consumers more flexible payment options.

"This is a game changer," said Sebastian Siemiatkowski,

Klarna's co-founder and CEO. "We look forward to helping

redefine checkout at the world's largest retailer - both online

and in stores."

Buy now, pay later pioneer Klarna is preparing for its

long-awaited U.S. stock market debut, publicly filing for the

IPO last week and disclosing that its revenue jumped 24% in

2024. While the fintech has yet to reveal terms, it is

reportedly aiming to raise over $1 billion at a valuation

exceeding $15 billion.

The fintech said the exclusive partnership with OnePay will

give millions of Walmart ( WMT ) customers flexible payment options and

will be directly integrated at checkout this year.

It added that customers, once approved, can choose repayment

terms ranging from 3 to 36 months and manage their loan directly

on the OnePay app.