Walmart To Introduce Walmart-2-Walmart
By Megan Zielinski, contributing writer
At the end of this month, Walmart will launch new “Walmart-2-Walmart”— a financial program allowing customers to transfer money between all 4,000 stores across the U.S charging half of what competing companies charge for transfer fees.
Through Walmart-2-Walmart, customers can transfer up to $50 for a fee of $4.50 and up to $900 for the cost of only $9.50, whereas Western Union charges $20-$85 for transferring the same amount. According to Walmart, other companies charge up to $70 for money transfers under $1,000. The cost of $9.50 compared to nearly $100 is a price cut advantage to Walmart customers that is likely to shake-up the competitive industry. “Walmart-2-Walmart is a great example of how Walmart continues to partner with world-class providers to offer customers financial products and services that provide clear benefits and help them save money,” states Daniel Eckert, senior VP of financial services for Walmart U.S.
A study revealed that one in four households, 28 percent of Americans, rely on money transfers to support family and household budgets, with the majority of those effected being military families and oil field workers. Walmart is making an effort to reach out to unbanked households through provided low-cost alternatives.
Moneygram, global transfer company, previously worked with Walmart for the past decade. Since Walmart recently announced incorporating another organization, Ria Money Transfer, into the Walmart-2-Walmart program, Moneygram has been ousted out of partnership and is now competition. Moneygram experienced a drop in shares by 16 percent and Western Union by 4 percent upon the news of Walmart-2-Walmart.
Walmart-2-Walmart transfer service is another brick in Walmart’s provided financial services—the world’s largest retailer owns MoneyCenters, allowing customers to cash checks online or in-store for $3 service charge. Through Walmart’s MoneyCenter, customers can deposit checks directly into a MoneyCenter card, prepaid Visa, or Mastercard. Walmart’s checking and banking services, “Bluebird,” provided by American Express, offers Walmart customers with the convenience of avoiding activation fees, monthly maintenance fees, rising fees and other traditional banking expenses. “Our customers tell us that they’re tired of navigating a complex maze of do’s and don’ts to avoid the ever growing list of fees found on checking products. Bluebird solves this problem and we believe it’s the best product on the market to help customers affordably manage their everyday finances,” says Eckert. Through Walmart’s Bluebird program, customers can activate their debit card at any of the provided 22,000 American Express ATMs for free with direct deposit.
While Walmart is hopeful the money transfer service will drive store growth and sales, Eckert emphasized the importance of the company providing shoppers with more financial choices. “We’re doing what we do best — launching a new service that challenges the status quo and drives down prices for our customers.”