BENTONVILLE, Ark. -- Wal-Mart Stores Inc. said it will open 1,000 Wal-Mart MoneyCenterscovering a quarter of its storesby the end of 2008. The company will also broaden its menu of financial products and services, beginning with the launch of the Wal-Mart MoneyCard, a reloadable prepaid Visa rolling out nationally with GE Money and Green Dot.
The move comes several months after Wal-Mart officially gave up its longtime quest to become a bank. A Wal-Mart Bank would have been a direct threat to convenience stores by forcing them to go to their biggest retail [image-nocss] competitor for loans and other financial services, according to testimony on behalf of the National Association of Convenience Stores (NACS) at a Federal Deposit Insurance Corp. (FDIC) public hearing.
The rapid expansion of its new low-cost money services and in-store locations will help meet the needs of the millions of unbanked and underserved customers who visit Wal-Mart each week for their basic money service needs, the company said.
Wal-Mart MoneyCenters will assist customers who are outside mainstream banking with convenient, nationwide access to low-cost money services, including check cashing, money orders, bill payment and money transfers.
MoneyCenter benefits include:
Convenience: One-stop shopping with extended hours, seven days a week. Safety: Well-lit, safe and secure area to cash checks, pay bills and transfer money. Savings: With Wal-Mart's everyday low pricing, customers can save 25% to 50% or more over other leading money service providers, said the retailer.Many of our customers are paying too much, traveling too far and not being well served, said Jane Thompson, president of Wal-Mart financial services. But they still need to pay their bills, cash their checks and transfer money. We're offering them a safe place and a card to help them manage their money. We've seen firsthand what a difference that can make. It changes lives.
Wal-Mart currently conducts more than two million money services transactions each week. Last year, customers who used Wal-Mart's services saved an average of $450 per year (or almost $40 per month). With the opening of additional Wal-Mart MoneyCenters, the company expects total savings to grow dramatically this year, claiming that it will put more than $320 million back into customers' pockets.
The $40 our customers save each month can grow to become the down payment on a house or help pay for a child's college education, said Thompson. That's our goalto help our customers prepare and save for the future by giving them access to greater financial opportunities.
With 225 currently, Wal-Mart MoneyCenters will double to 450 by the end of this year and then more than double again to 1,000 by the end of 2008.
The Wal-Mart MoneyCard provides many of the advantages of a checking accounta way to manage money, pay bills and make purchases.
MoneyCard benefits include:
Convenience: Use at all locations where Visa is accepted and at ATMs worldwide. Shop and pay bills by phone or online, pay at the pump. Safety: No need to carry large amounts of cash and funds are protected if card is lost or stolen. Online access to track activity. Daily balance alerts via cell phone or email. Savings: No over-limit fees. Designed so customers can minimize or avoid usage fees.The Wal-Mart MoneyCard is a reloadable prepaid Visa card issued by GE Money Bank and offered at Wal-Mart's prices. The card can be loaded and used instantly after activation; no bank account or credit check is required. It can be reloaded at Wal-Mart or at any of the tens of thousands of Green Dot network locations nationwide. All funds loaded onto the card are FDIC-insured.
The Wal-Mart MoneyCard will be rolled out to approximately 1,300 Wal-Mart stores by the end of June and to another 1,300 stores by the end of July. The card will be available at most Wal-Mart stores by year end.
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