Walmart launches money transfer service

Walmart launches money transfer service

Walmart is taking on Western Union and MoneyGram through the launch of a low-fee store-to-store money transfer service.

The retail giant has teamed up with Euronet Worldwide subsidiary Ria on the Walmart-2-Walmart service, which will enable customers to transfer money to and from more than 4000 stores when it launches next week.

The partners say that their service is far cheaper than rivals, with just two pricing tiers: customers pay $4.50 for transferring up to $50 and $9.50 for sending up to $900.

Daniel Eckert, SVP, services, Walmart US, says: "After listening to our customers complain about the high fees and confusion associated with transferring money, we knew there had to be a solution. Walmart-2-Walmart brings new competition and transparent, everyday low prices to a market that has become complicated and costly for our customers."

Walmart argues that its service will particularly benefit the tens of millions of America's underbanked. The retailer has long had its sights on this market, teaming up with American Express in 2012 to launch Bluebird, a mobile-heavy alternative to bank debit and current accounts.

Comments: (2)

Christopher Williams
Christopher Williams - RTpay - Winchester Uk 17 April, 2014, 17:59Be the first to give this comment the thumbs up 0 likes

This is excellent news for the underbanked in USA. It would be even better if Walmart could adjust the price break so that it is $200 before the upward rate is applied, so that the G20 ceiling of 5% is not breached.

Hopefully this is also a way for international transfers, such as our RTpay gift program, to be funded at Walmart stores at a competitive price, so our zero cost policy can be applied.

In any event, it is good to see that attention is being paid to the most needy by a major organization.  

A Finextra member
A Finextra member 23 April, 2014, 09:26Be the first to give this comment the thumbs up 0 likes

$4.50 on a $50 transfer - ouch - that's almost 10% (and much more for lower amounts). The other services must have been brutal.