02 September 2015

Walmart makes financial services push

16 June 2010  |  7445 views  |  0 jigsaw Dollars

Retail giant Walmart is ramping up its assault on the financial services sector, acquiring a minor stake in US pre-paid outfit Green Dot and launching its first credit card in Canada on the back of a recently awarded banking license in the country.

Green Dot has issued more than two million shares to Walmart in the wake of a recent extension to their alliance. The shares represent less than one per cent of Green Dot's total after a planned IPO set to raise up to $150 million.

The deal comes as Green Dot awaits regulatory approval for the $15.7 million acquisition of Utah-based Bonneville Bank. Walmart abandoned plans to acquire a US banking license in 2007 in the face of bitter opposition within the industry and among politicians.

The retailer has had more success gaining a license in Canada, receiving approval in recent weeks to launch Walmart Canada Bank. It has now launched a Walmart Rewards MasterCard, which gives cardholders dollars instead of points, in what is widely expected to be just the first stage of an assault on the Canadian market.

Walmart is not the only retailer seeking to take advantage of public disillusionment with banks by offering its own financial services. In the UK Tesco has moved to take on traditional players, buying out RBS to take complete control of their joint venture and turn it into a full service bank.

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

25 May, 2010
20 November, 2009
01 July, 2009
30 March, 2009
19 December, 2008

Top topics

Most viewed Most shared
Third of Brits expect day-to-day mobile pa...
7808 views comments | 37 tweets | 15 linkedin
SunGard system glitch causes havoc for BNY...
7326 views comments | 14 tweets | 12 linkedin
Payments UK sets out vision for 'world cla...
6456 views comments | 17 tweets | 10 linkedin
HSBC glitch leaves thousands of customers...
5921 views comments | 13 tweets | 7 linkedin
Swedish mPOS firm iZettle raises EUR60m fo...
5754 views comments | 12 tweets | 8 linkedin

Featured job

to $120K base + bonus
New York City, NY (USA)

Find your next job