Is Walmart a Bank in 2023? No, But It Offers Some Banking Services
Walmart is not actually a bank as of 2023. However, through services like prepaid debit cards, money transfers, and in-store bank branches, Walmart does aim to meet many banking needs for its customers. And with new fintech partnerships, Walmart has aspirations to become a much bigger player in financial services in the coming years.
Why Do People Wonder If Walmart is a Bank?
With prepaid cards, ATMs, check cashing, and even physical bank branches inside stores, it‘s easy to see why some customers get the impression Walmart is a one-stop shop for banking too.
Walmart offers enough financial products and services that people may mistakenly assume it‘s a bank. But the truth is, Walmart is not a licensed banking institution that can accept deposits or offer traditional checking/savings accounts.
Still, by providing services like the Walmart MoneyCard, Walmart is able to appeal to the sizeable unbanked and underbanked population with an affordable prepaid card option.
Just How Many U.S. Households are Unbanked?
According to the FDIC’s most recent survey, 5.4% of U.S. households (approximately 7.1 million) were unbanked in 2019. This group lacks access to even basic financial services like a bank account.
The unbanked rate was notably higher among:
- Lower-income households – 13.8% of households earning <$30K were unbanked
- Black households – 13.8%
- Hispanic households – 12%
- Households with unmarried heads – 15.7%
- Unemployed households – 20.2%
For Walmart, the sizeable unbanked population presents an opportunity to build loyalty and capture new customers by offering prepaid cards and other entry-level financial products.
Walmart‘s Current Financial Service Offerings
While Walmart doesn‘t currently function as a full-service bank, customers can conveniently get access to services like:
Prepaid debit cards
- Walmart MoneyCard – FDIC-insured prepaid card with mobile app, rewards, overdraft protection
- Walmart Rewards Card – Earn 5% back on Walmart.com purchases
Money services
- Check cashing – Turn checks up to $5,000 into cash
- Money transfers – Low-cost domestic and international transfers
- Bill payments – Pay bills with various payment methods
- Money orders – Purchase money orders up to $1,000
- ATMs – Access cash at Walmart ATMs or in-store
Tax preparation
- Jackson Hewitt – Get help filing taxes at Walmart kiosks
Financing
- Installment financing – Low monthly payments for Walmart purchases
- Walmart Credit Card – Revolving credit card exclusively for Walmart purchases
This wide range of offerings allows customers, especially the unbanked, to manage finances all in one place at Walmart.
Walmart MoneyCard Benefits and Features
The Walmart MoneyCard prepaid card demonstrates Walmart‘s goal to provide affordable, accessible financial products. With the reloadable MoneyCard, users can:
- Deposit funds
- Set up direct deposit
- Pay bills online
- Get up to $200 overdraft protection
- Make purchases anywhere Visa is accepted
Walmart MoneyCard Key Features
| Feature | Details |
|---|---|
| Minimum to open | $1 |
| Monthly fee | $0 with direct deposit |
| Purchase fee | $3 |
| ATM withdrawal | $2.50 in-network, $3 out-of-network |
| Cash reload | Up to $1,000 per day free at Walmart |
| FDIC insurance | Up to $250,000 |
The card provides unbanked users an affordable starter option to build credit and enter the financial system.
Actual Banks Inside Walmart Stores
In addition to its own financial offerings, Walmart provides space in stores for bank branches. Major banks like Wells Fargo, Woodforest National Bank, and Regions can often be found inside Walmart locations.
This makes it even more convenient for customers to handle finances all in one trip to Walmart. The bank branches also reinforce the perception of Walmart as a one-stop-shop for financial needs.
Walmart‘s Partnership with Fintech Firm Ribbit Capital
While not currently a bank, Walmart has big fintech ambitions. In 2022, Walmart invested in venture capital firm Ribbit Capital, which has backed successful startups like Affirm, Robinhood, and CreditKarma.
This partnership signals Walmart is serious about expanding its financial services through digital innovation. With Ribbit‘s support, Walmart aims to:
- Develop new financial products to better compete with major banks
- Meet the needs of its core low-income customer base
- Attract more higher-income customers with enhanced offerings
- Build an end-to-end digital financial ecosystem inside its superstores
So in the future, we may very well see Walmart morph into a fintech powerhouse.
The Bottom Line
Right now, Walmart is not technically a licensed bank. However, through prepaid cards, money services, and strategic partnerships, Walmart currently meets many core banking needs for the underserved.
And with sights set on engaging the sizeable unbanked population, plus major fintech ambitions, Walmart is positioning itself to potentially disrupt retail banking in the years ahead.
As an ecommerce seller, these are trends worth monitoring. The rise of "banking at Walmart" could impact everything from payment processing costs to consumer spending habits. But sellers can also take advantage of Walmart‘s expansive reach and aim to sell on Walmart‘s Marketplace.
One thing is for sure – Walmart has the scale, customer base, and drive to become a transformative force in consumer finance. Even if today it stops short of being a full-fledged bank.
