Walmart Inc. and PayPal want to help consumers spend more of their money — seamlessly — at the retailer’s stores and e-commerce site.
The Bentonville, Ark.-based retailer said it’s teaming with PayPal to provide financial services and products for their shared customers. The collaboration of the two behemoths represents the first time the retail giant and financial player are working together.
The news is also bound to be a sore point for Amazon, which has never officially accepted PayPal dating back to the late Nineties when the service was part of eBay, then a main Amazon competitor.
Today, Walmart and Amazon are going head-to-head more often. Amazon launched its own service, Amazon Pay, but it’s scope is smaller and it’s mainly used by consumers for purchasing on the site, although the e-commerce giant in 2013 relaunched Pay, allowing consumers to purchase from other sites.
Walmart and PayPal in early November will roll out PayPal cash in and cash out money services at Walmart U.S. units for a fee of $3 per service. This marks the first time PayPal mobile app users will be able to take cash out of their PayPal accounts at a brick-and-mortar retailer. Consumers will also be able to load cash into their PayPal balance at Walmart stores.
Like PayPal mobile app users, PayPal Cash Mastercard customers will now be able to access their cash balance using Walmart Service Desks, ATMs and cash registers in stores for the same $3 fee.
“With 90 percent of Americans living within 10 miles of a Walmart store, we know that offering PayPal cash in and cash out money services for an exclusive low fee is going to provide great value to the many people who rely on Walmart and PayPal to help manage and move their money,” said Daniel Eckert, senior vice president of Walmart Services & Digital Acceleration.
“We consider this a key collaboration for both PayPal and Walmart,” said Dan Schulman, president and chief executive officer of PayPal. “We’re committed to working together to make it simple and easy for people to use PayPal cash in and cash out money services at every Walmart location in the U.S. We look forward to working hand-in-hand to help people and families with their financial services needs.”
Walmart in 2015 introduced its own system, Walmart Pay, which works with credit, debit or pre-paid gift card and enables payment through an Android or iOS device using the company’s app.