Walmart Getting Into Wire Transfer Business
May 1, 2014
Walmart has decided to take a big step into the wire transfer business.
They already have an agreement with MoneyGram but now they will
be unveiling their own service. It will be called "Walmart-2-Walmart."
It is going to be marketed to those who want to send wires that
are $900 or less.
Walmart is a huge company and the announcement that they are entering
the wire transfer business caused the shares of MoneyGram to take
a big hit and the shares of Western Union stock also dropped. WalMart
has more than 4,200 locations in the United States so they instantly
become a huge player in wire transfers. They are also going to offer
transfers a lot cheaper than either Western Union or MoneyGram which
will make them a very popular option for customers.
The new "Walmart-2-Walmart” transfer will allow customers
to send transfers cheaply. Transfers from up to $50 will cost $4.50
and those up to $900 will cost $9.50. That is a huge difference
from MoneyGram or Western Union who charge about $85 to transfer
$900.
The addition of Walmart to their wire transfer business will be
a welcome addition for consumers who have been gouged by Western
Union and MoneyGram for decades. It may be that Western Union and
MoneyGram will have to lower their prices to compete.
