Walmart enhances 'branches' by reviving US-Mexico fund transfers
- Walmart will bring back transfers between the US and Mexico through Walmart2Walmart, focusing on low transaction fees.
- The company is making an omnichannel play that is effectively its own version of branch banking.
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The news: Walmart will revive the remittance product it retired in 2018 so customers can send money from stores in the US to locations in Mexico.
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The new Walmart2Walmart Mexico is designed with affordability at the forefront: Per-transaction fees will be as low as $2.50.
Walmart said the offering is part of its approach to provide financial services for unbanked and underbanked people.
The bigger picture: Restoring US-Mexico remittances is Walmart's latest step toward broadening its stateside financial services lineup.
Neobanking. When Hazel came out of stealth mode in January, Walmart, which launched the fintech with Ribbit Capital, said it would get into neobanking. Hazel will be renamed ONE after a neobank that it's acquiring and will offer products through an app and in Walmart stores. Services will also be available through collaborations with other merchants and employers.
Deposit accounts. Walmart rolled out a demand deposit account (DDA) version of its prepaid debit card, Walmart MoneyCard, in June 2021. The DDA is accessible both online and in Walmart's stores.
The big takeaway: Walmart is making an omnichannel play that is effectively its own version of branch banking. Its mass-market approach is a continuation of how it serves its customer base and stands in contrast to branch strategies that incumbent banking players are trying out in the US.
Hybrid branches offered by banks like PNC and U.S. Bank emphasize hands-on customer service for complex needs while pushing self-service for transactional tasks.
TD Bank's New York City flagship branch, a version of the hybrid model, has an open floor plan designed to reflect how consumer habits have shifted since the pandemic started.
M&T Bank revamped its branches to serve people from different backgrounds: They can use banking services in their preferred languages, and there are staff who understand cultural nuances.
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