A Resilient Partnerships Strategy often Requires Redundancy

The world of Buy Now, Pay Later (BNPL) had a major shakeup recently: Walmart replaced Affirm with Klarna as its exclusive BNPL provider. This sudden switch highlights an often-overlooked reality: partnerships can be powerful growth drivers, but they can also be a single point of failure when companies don’t build resilience into their deal-making strategy.

The Risk of Over-Reliance on a Single Partner

For Affirm, Walmart represented a massive distribution channel, granting access to millions of customers. Losing that partnership seemingly overnight not only means lost revenue but also a blow to Affirm’s market positioning. The same risk applies to any fintech or tech company that depends too heavily on a single partner for scale. Without redundancy, diversification, and strategic alignment, one executive decision can change the trajectory of a business.

What Could Affirm Have Done Differently?

It’s possible that Affirm did everything right, yet still lost the deal. Reports suggest that Walmart will be granted warrants in Klarna’s upcoming IPO, a financial incentive that may have simply been too compelling to turn down. In cases like this, even strong partnerships can be outmaneuvered by strategic financial plays. However, companies can still take steps to mitigate risk and position themselves for long-term success.

1. Diversified Retail Partnerships – Instead of leaning so heavily on Walmart, Affirm could have proactively built equally deep relationships with competitors like Target, Best Buy, or Kroger. Having multiple high volume partnerships protects against sudden exits.

   
   

2. Exclusive vs. Non-Exclusive Agreements – Klarna likely negotiated for exclusivity, but did Affirm explore ways to limit its downside risk? Structuring deals to allow multiple partnerships in different retail verticals can reduce exposure to a single loss.

   
   

3. Deeper Integration & Value Beyond Payments – If Affirm had offered Walmart more than just financing—like loyalty integrations, customer insights, or co-marketing—it could have made itself harder to replace.

   
   

Key Takeaways:

For tech companies navigating partnerships, here are key takeaways:

• Think Long-Term: Partnerships should be designed for sustainability, not just short-term growth. Building multi-threaded relationships across departments makes deals harder to unwind.

• Expand Beyond One Channel: If a single partner represents more than 25% of your revenue, it’s time to diversify.

• Add Unique Value: Make your solution indispensable by offering partners more than just the core product—think data insights, co-branded experiences, or integrations that embed your service deeply into their business.

  
  

The Bigger Picture

The Walmart-Affirm breakup is a reminder that partnerships aren’t just about landing the deal, they’re about keeping it. Klarna may have won this round, but its challenge now is proving that it can deliver at scale and avoid the same fate. The BNPL space remains highly competitive, and the next battle will be about who can build partnerships that stand the test of time.

At Interweve, we specialize in helping early-mid stage tech companies structure partnerships that drive growth, minimize risk, and create long-term value. Check us out: interweve.com.