Walmart Adds to Financial Services Offerings with PayNearMe and Green Dot Partnerships
Last week, retail giant Walmart announced a new partnership with PayNearMe, a bill payment fintech, and bank technology company Green Dot to provide a way for customers to use cash for digital payments starting in August. The partnerships take Walmart one step further in meeting customers’ financial service needs as it continues to expand its offerings in this sector.
“Cash is still a very important payment type,” said Laura Rummel, senior director of account management and retail partnerships at PayNearMe, according to American Banker. “They’re not paying with cash because they want to, they’re paying because they have to.”
Banking Dive highlighted that the shorter cash payment transactions will be simpler for Walmart employees to process, making it more cost-effective for the company. Customers will be able to use the service to pay companies that consistently bill them, like utilities, insurance companies, or municipalities.
Fees for these payment services are determined by the biller, which may cover the cost of intermediaries like PayNearMe, or pass the fee onto consumers. Most transaction fees for consumers are $2.99 per bill, but can be as high as $5.99, or as low as zero if the biller absorbs the cost.
The service benefits those who are unbanked or underbanked, as well as consumers whose bank doesn’t offer electronic bill payment. It also reduces fees for consumers by removing the need for cashier’s checks and letting them pay bills at one location.
“We are always looking for opportunities to deliver modern and seamless banking and money management solutions that create exceptional experiences for our customers and partners,” said Brandon Thompson, executive vice president for retail, tax, and PayCard at Green Dot.
In January, Walmart announced a strategic partnership with global investment firm Ribbit Capital to create a fintech startup aimed at expanding the company’s financial services offerings for customers and employees.