You are here

Walmart Getting Into Wire Transfer Business

2014-05-01 00:00:00

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.