While Walmart’s efforts to secure a bank charter were stymied by federal regulators a few years ago, they continue to extend their financial services product line by expanding their check and card cashing services. Many merchants have added ATMs to their stores to ensure that their customers have cash to purchase what ever they want, but most leave check cashing to the banks, check cashers, and payday lenders. Walmart, however, wants the whole paycheck available for buying products and services in their stores.
The expansion includes cashing most types of pre-printed checks up to $5,000 and accepting more forms of ID for check cashing, as well as establishing Express Check Cashing check-out lanes at selected stores during peak hours.
“We are constantly looking for ways to make life better for our customers while saving them money,” said Daniel Eckert, head of Walmart Financial Services. “This expanded program now enables Walmart to bring everyday low price cashing services to more customers who have a need for immediate access to their cash.”
“We know more and more of our customers have a need to cash these kinds of cards, and it’s important that they’re able to gain access to all their cash,” said Eckert. “We’re excited to be the first major retailer to make it possible to cash these types of cards to the penny and give every cent to the customer, instead of in $10 or $20 increments.”
Wal-Mart cashes checks and cards up to $1,000 for $3, and cashes checks up to $5,000 for $6, offering significant savings over many other check cashers.
This strategy is particularly attractive to the 40 million households that the FDIC has identified as underbanked. Many have been driven away by high fees and are looking for lower cost solutions to their financial needs.
For more details read the article in The Green Sheet; http://www.greensheet.com/newswire.php?flag=display_story&id=22966
Read related Mercator research:
Retail Banking’s Canary in the Mine: Marketing to the Underbanked Customer
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