Affirm Holdings Inc (NASDAQ:AFRM) shares are trading lower Tuesday following a report indicating Walmart Inc's (NYSE:WMT) majority-owned startup One has started offering buy now, pay later services.

What To Know: According to a CNBC report, Walmart-backed fintech startup One has begun offering buy now, pay later options for big-ticket items in some of its U.S. stores.

One is a direct competitor of buy now, pay later market leader Affirm, which has been the exclusive provider of installment loan services for Walmart customers since 2019. Late last year, Walmart even expanded its agreement with Affirm to add new payment options at self-checkout kiosks at more than 4,500 U.S. stores.

CNBC visited a Walmart location in New Jersey and found that both One and Affirm were available payment options at checkout. Loans from either provider were available for purchases above about $100 in electronics, jewelry, power tools, automotive accessories and more. Groceries, alcohol and weapons purchases were not eligible for loans from either company.

The report indicates that buy now, pay later drove approximately $19.2 billion in online spending in the first quarter of 2024, up 12% on a year-over-year basis.

Affirm is due to report quarterly earnings on May 8. The company is expected to report a loss of 69 cents per share and revenue of $549.416 billion, per estimates from Benzinga Pro.

AFRM Price Action: Affirm shares were down 7.93% at $29.34 at the time of publication, according to Benzinga Pro.