Walmart (NYSE:WMT) said Thursday it will partner with Ria Money Transfer to launch the new Walmart-2-Walmart Money Transfer Service. Under the program, users can transfer money to and from more than 4,000 Walmart stores.
The service lets customers transfer as much as $50 for a $4.50 fee, and up to $900 for a $9.50 fee. It launches on April 24.
Walmart said the idea for the service was sparked by shoppers asking why money transfers were so expensive. Walmart said its money transfer service costs as much as 50 percent less than other options available on the market.
"After listening to our customers complain about the high fees and confusion associated with transferring money, we knew there had to be a solution," said Daniel Eckert, senior VP of services for Walmart U.S.
Money transfers at Walmart through MoneyGram will remain available for customers wanting to send money to a location other than a Walmart store and amounts larger than $900, Walmart said. Services such as MoneyGram and Western Union will still offer more features compared to Walmart's service, which currently does not allow transfers outside the U.S and has no online component.
MoneyGram is under a three-year contract with the retailer that began in April 2013. The partnership between MoneyGram and Walmart is more than a decade old.
"MoneyGram continues to be a very valuable partner for us. What Walmart does is provide some added choices for customers. We do best when we provide a broad assortment of products at a low price and let customers choose," Eckert said.
Walmart's new program is the second payment announcement this week following Facebook's (NASDAQ:FB) reveal that it is close to launching financial services, including mobile payments, in Europe. The move would provide the social media site with the ability to offer person to person payments.
-See this Walmart press release
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