would work.Īlmost 28% of Americans are classified as either underbanked or unbanked, with millions using money transfers as a critical part of maintaining household budgets or helping friends and family in times of crisis. Wal-Mart has worked to provide bank-like services for several years. Financial services added about $4.8 billion to Wal-Mart’s topline revenue last year, according to the retailer’s annual filing with the federal Securities and Exchange Commission. Keeping the transfers domestic and tied to the store infrastructure, then capping transfers at $900 were the best way to keep the price down.īianchi said senders can provide a pin number or security question to the transfer agent which allows the receiver to pick up the money without having to show identification, although a photo I.D. The partners said they wanted to slash the price for customers who use the services the most - military servicemen on bases or oil field workers sending money back home. government requires transfer agents to collect and store sending and recipient information in addition to filing regulatory papers on transactions above $900. Juan Bianchi, CEO of Ria Money Transfers, said the transfers are capped at $900 per day to stay clear of the regulatory hoops that come with handling larger wire transfers. Roughly 95% of Americans live within 15 miles of a Wal-Mart location so leveraging this massive physical infrastructure makes this value proposition possible. ![]() A customer can bring in cash or use a pinned debit card to initiate a money transfer in any one of our stores, including Neighborhood Markets and Express formats,” Eckert said. “Walmart-2-Walmart is available in-stores only, no online option. The retail giant said it will continue to offer Money Gram premium grade services and has signed a three-year extension with the financial partner to 2016. MoneyGram, which clears through the Bank of New York, noted that Wal-Mart Stores was its largest partner in 2013 representing 27% of its total money transfer revenue.Įckert said Walmart-2-Walmart has limits that MoneyGram does not. Wal-Mart offers a like service with MoneyGram which is worth an estimated $398 million, based on last year’s business between the two companies. Eckert said that same transaction would cost up to $76 with other service providers. Eckert said the real value comes in the larger transactions as up to $900 can be sent for $9.50. For amounts under $50 the transfer fee is $4.50, a slight discount from the $4.75 to $5 charged by other services. Walmart-2-Walmart has a clear fee structure depending on how much money is transferred. “We’re doing what we do best – launching a new service that challenges the status quo and drives down prices for our customers,” Eckert said. He said the new product - Walmart-2-Walmart - brings new competition and transparent, everyday low prices to a market that has become complicated and costly for consumers. ![]() “After listening to our customers complain about the high fees and confusion associated with transferring money, we knew there had to be a solution,” said Daniel Eckert, senior vice president of services for Walmart U.S. Wal-Mart said it saw a gap in services for its customer base and pursued a partner to bring a cheaper option for sending money within its U.S. The retail giant said it has teamed up with Ria Money Transfer, a division of Leawood, Kansas-based Euronet, to offer a cheaper money transfer option to its cache of financial services. is once again expanding its fee-based services with a new money transfer option expected to rival Money Gram for U.S. Facing tough sales comparisons and other operating headwinds, Wal-Mart Stores Inc.
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