Affirm(AFRM.US) shares plummeted before the market opened as it was replaced by Walmart and the industry competition escalated.

Affirm Holdings, the "PayPal-like" company known for its "buy now, pay later" service, saw its shares fall on Monday before the market opened as it was replaced as Walmart's (WMT.US) fast credit option by Swedish fintech Klarna, which will partner with Walmart's OnePay consumer finance app to offer "buy now, pay later" services to U.S. consumers. As of writing, the stock had fallen more than 13% before the market opened, but the decline has since narrowed to more than 6%. According to reports, Klarna will work with OnePay to provide "buy now, pay later" services to American consumers. Affirm is currently a partner of Walmart, but once the integration plan this year is launched, Klarna will become the exclusive choice for Walmart's installment loan services. Sebastian Siemiatkowski, CEO of Klarna, said the deal allows Klarna to reach millions of customers of the U.S. retail giant and opens a new expansion path in the United States, which is already one of the fastest-growing markets for Klarna. Affirm's stock price also fell due to increased competition in the "buy now, pay later" industry. Klarna, which is known for its "buy now, pay later" business, filed for an initial public offering (IPO) with the U.S. Securities and Exchange Commission (SEC) on Friday, providing investors with another option in the "buy now, pay later" industry. In addition, Affirm's competitor, Block (XYZ.US), added Afterpay financing options to its popular Cash App. The data showed that Affirm's stock price had fallen by 38% in the past month.