April 23 (Reuters) - Walmart's ( WMT ) majority-owned

fintech startup One has started offering buy now, pay later

(BNPL) loans for big-ticket items like electronics and power

tools at some of the retailer's U.S. stores, a source said on

Tuesday.

The fintech joins peer Affirm as one of the options

that Walmart ( WMT ) customers will have when shopping at the retail

giant.

The news, first reported by CNBC citing a recent visit, said

ads for both One and Affirm are vying for consumer attention in

the retail chain's electronics aisles.

"For the time being, Affirm will remain a funding option at

Walmart ( WMT ) but will presumably compete head-to-head with One at the

point of sale (POS)," JPMorgan wrote in a note on Tuesday,

adding that Walmart ( WMT ) could push One more prominently at the POS.

Affirm has also stepped outside the competitive

e-commerce market to offer BNPL services for elective medical

procedures, Reuters reported earlier on Tuesday.

BNPL providers like Affirm and One partner with retailers

like Amazon.com ( AMZN ) and Walmart ( WMT ) to finance customer

purchases, earning a commission on the sale and interest on the

loan.

BNPL loans, which shoppers repay in a handful of

installments, have been steadily gaining popularity and drove

$75 billion in online spending in 2023, according to Adobe

Analytics.

Customers can avail the facility to buy electronics,

jewelry, power tools and automotive accessories, but items like

groceries, alcohol, and weapons will not be eligible.

One has been ramping up its offerings as it tries to

attract more customers. Last year, it started

offering

a 5% interest rate, over 12 times the national average of

0.4%, on savings accounts of up to $100,000.