Walmart and PayPal new partnership in mobile payments
Walmart and PayPal have announced a partnership which will see the two collaborating on PayPal financial services. A customer can now walk into Walmart stores and withdraw or deposit cash in his PayPal account.
It will be known as PayPal cash in and cash out services. It will also provide the ability to withdraw cash from PayPal MasterCard – a debit card – in Walmart stores. The service will cost the customer USD 3 in transaction fees. This is the first example of a PayPal mobile app user being able to withdraw and deposit cash in a brick and mortar store.
PayPal chasing more traditional avenues
PayPal has long sought to be available to customers visiting physical locations such as Walmart stores. It earlier had a payment system allowing customers to pay in selected outlets using phone number and pin. It had also partnered with businesses such as Home Depot but with rising of Apple Pay those efforts had died out.
Earlier this year it had been reported that PayPal desired to enter traditional banking services since in e-commerce space it was rapidly being eclipsed by Apple Pay and Android Pay. In e-commerce eBay, the company which was a part of PayPal at a time has moved away from it as a primary payment option.
Walmart looks to have its own mobile payment platform
Walmart is trying to get back to the use of a mobile payments platform. It had once tried its own version Current C but failed. It is a crucial collaboration just before the all-important holiday season. 90% of Americans live within a few miles of Walmart stores and with PayPal services being rolled out at every Walmart in the US by November it comes as a solid boost to both businesses.
The one small disadvantage in the not very negligible fee of USD 3 per transaction but PayPal points out it is about the same as ATM withdrawal charges. PayPal cash in is available immediately in all Walmart stores while cash out services will be available in few weeks before holiday shopping begins.