Wal-Mart, the World’s largest retailer and the largest company based on its revenues, have further expanded themselves by launching one plan after another in the past one year. The idea is to command a greater U.S. retail banking market share which seems to be good news for some and bad news for others.
The retail giant Wal-Mart tapped on the retail banking market in August 2009, when its “Money Centres” started offering ‘Bill payment services’
Following this innovation the company declared that it is in the process of increasing its Centers from 1,000 to 1,500 and this will be done by the closing of 2010. There are also other exciting offers in place. A gas cash-back promotion using Wal-Mart’s prepaid service has been introduced in May. Following this, reloadable debit cards are introduced for which the retailer needs to have at-least 1 % stake in Green Dot – a prepaid card provider. Wal-Mart customers in US are also eligible to find business loans from Sam’s Club Stores – a member of the retail colossus.
The recent move of Wal-Mart in the banking sector is aimed at increasing customer convenience and providing low cost services. But experts believe that there are greater interests as financial services can help add more customers to the retailer’s stores. Wal-Mart has 4,300 stores in U.S. alone and another 4000 stores in countries like Canada, Puerto Rico, Mexico, Brazil, UK, China and others. Nelson Lichtenstein, professor at University of California, says, “When you have 4,300 platforms to sell stuff, you are trying to sell whatever you can [under one roof]”.
Wal-Mart’s banking foray in this time of worst financial crisis and Washington’s new banking reforms is being noticed. Erin Armendinger, managing director, Wharton, says, “I don’t think [Wal-Mart] does anything by accident.”
This article was submitted by Rohit Arora, co-founder of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to