Affirm (AFRM.US) experienced a significant decline of over 12% after its competitor Klarna announced it would become the exclusive provider of Walmart's "buy now, pay later" service.

On Monday, Affirm (AFRM.US) shares plummeted over 12% to $43.7, as its competitor Klarna announced it would become the exclusive provider of "buy now, pay later" services for Walmart (WMT.US) in the United States. This decision was a significant blow to Affirm, as the company had established a partnership with Walmart since 2019.

Klarna filed its initial public offering (IPO) prospectus on Friday, planning to list on the New York Stock Exchange under the ticker "KLAR". The company has yet to disclose the number of shares to be offered and the price range.

On Monday, Klarna announced a partnership with OnePay, a consumer finance app, to provide BNPL loans for Walmart's customers in the United States. "Walmart customers will be able to use OnePay's installment loans, supported by Klarna, to purchase thousands of products, including electronics, home goods, auto parts, and more," Klarna said in a press release. Approved users can choose repayment terms ranging from 3 to 36 months.