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.