Will Wal-Mart’s Dive Into the Money Transfer Business Pay Off?
Wal-Mart Stores Inc. (NYSE:WMT) is a big box store company during an era in which big box stores are increasingly on the way out, but the company has proven skillful in adapting to changes in consumers needs and demands. In March, the company launched it’s first smaller, “urban-format,” convenience store model, dubbed “Walmart-to-Go.” Last week, the company announced that it would begin carrying organic food, and now, according to a recent press release, the retail giant will begin offering money transfers as well — beginning on April 24.
“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 Wal-Mart U.S., in the press release Thursday. “Walmart-2-Walmart brings new competition and transparent, everyday low prices to a market that has become complicated and costly for our customers. We’re doing what we do best — launching a new service that challenges the status quo and drives down prices for our customers.”
The new Walmart-2-Walmart transfer service is a partnership with the financial services firm Ria, and will allow Walmart customers to transfer up to $900 between more than 4,000 different Walmart stores across the United States. As with everything the company does, its money transfer fees promise to significantly undercut its competitors.