American Express and Wal-Mart have successfully put into place the final pieces of their strategy to build a competitive checking account product in the United States. Now that Bluebird prepaid accounts will be granted FDIC insurance along with access to check writing capabilities enables the companies to market their account as a direct alternative to a demand deposit account.
Consumers who receive government benefits or military pay now can have those funds directly deposited to their Bluebird account. As we wrote in our recent viewpoint, American Express and WalMart’s Bluebird: Implications for Debit Issuers, these companies are meeting in the middle of the market, looking to appeal to consumers who want an alternative to traditional checking accounts:
“Since launching Bluebird, we have been listening to our customers’ feedback and working hard to expand its features and services,” said Daniel Eckert, vice president of financial services for Walmart U.S. “Bluebird is helping customers streamline everyday money management without the frustration of navigating complicated dos and don’ts just to avoid fees. The enhancements we’re announcing today make Bluebird a great option for our active duty military personnel, government employees and other customers helping them take greater control of their everyday finances.”
Competing against other direct bank strategies like Green Dot’s GoBank, the alternative checking account market is hot and getting hotter.
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