Overview of OnePay's New Cryptocurrency Feature
OnePay, the fintech application backed by Walmart, has introduced a significant new feature allowing users to buy, sell, and trade Bitcoin (BTC) and Ethereum (ETH). This expansion aims to enhance user engagement and provide an additional financial service within the app. It is important to note that customers cannot directly use cryptocurrencies for purchases at Walmart checkouts; all transactions will continue to be processed in USD.
This new functionality is expected to impact OnePay's existing user base of 1.5 million individuals and has the potential to reach Walmart's extensive network of 150 million weekly shoppers. The announcement was made in collaboration with Zerohash, a specialized crypto infrastructure provider. Walmart's current point-of-sale systems are not equipped to handle direct cryptocurrency payments. Consequently, the system facilitates users in converting their crypto assets into fiat currency, ensuring seamless integration with existing USD payment processes.
OnePay's Evolution and Service Expansion
Since its launch in 2022, OnePay has progressively broadened its offerings beyond basic mobile banking to encompass a comprehensive suite of financial services. These services include high-yield savings accounts, credit card options in partnership with Synchrony, buy-now, pay-later (BNPL) solutions facilitated by Klarna, and peer-to-peer payment capabilities. The recent integration of crypto trading, through its alliance with Zerohash, marks another strategic step in its service diversification.
OnePay has achieved considerable success in the mobile application market, currently ranking fifth on the App Store within the finance category, outperforming established financial institutions like Chase and Robinhood. In 2024, the fintech firm successfully secured $300 million in funding, with Walmart and Ribbit Capital leading the investment round. This funding elevated its valuation to $2.5 billion. Current estimations, further supported by employee share buybacks, suggest the company's market worth now exceeds $4 billion.
Mechanism for Crypto Conversion and Spending
With the new feature, OnePay users gain the ability to hold and trade both BTC and ETH directly within the application. They can then convert these digital assets into USD, which can subsequently be used for purchases at Walmart stores. This operational model ensures that Walmart's point-of-sale systems exclusively process USD, thereby avoiding direct handling of cryptocurrencies.
Fintech professional Simon Taylor elaborated on the system's functionality, stating:
You can’t actually pay with Bitcoin at checkout. You buy crypto in the app. You sell crypto in the app. The proceeds hit your OnePay Cash balance. – – Then you spend dollars at the register.... The Walmart POS never sees crypto. It sees USD.
Simon Taylor
Previous attempts by various entities to implement direct cryptocurrency acceptance at merchant checkouts have encountered significant challenges, with notable failures recorded in 2014, 2016, and 2021. OnePay's strategy of leveraging cryptocurrency as an engagement tool, rather than a direct payment method, may help it circumvent the obstacles that led to the downfall of earlier initiatives.
Implications for the Regulatory Landscape
As of the current reporting, there have been no indications of new regulatory updates or policy shifts from major financial oversight bodies such as the SEC, CFTC, or ESMA that are directly associated with this feature. The trading functionalities are reportedly designed to comply with existing regulations, ensuring accessibility for users. No specific licensing or compliance concerns have been brought to light regarding this recent addition to OnePay's services.
The cryptocurrency assets supported by this feature are exclusively Bitcoin and Ethereum. No information has been provided regarding alternative coins, governance tokens, or blockchain data metrics like Total Value Locked (TVL) changes. The absence of commentary from regulatory bodies suggests that neither the SEC nor other relevant authorities are currently focusing on this particular product rollout.