Is Walmart a Bank in 2024? (Not What You Think…)
Walmart sells almost everything. But despite its vast array of products and services, Walmart is not a bank in 2024. Still, with over 4,700 US store locations and extensive e-commerce reach, Walmart has evolved into a major financial services provider for millions of Americans.
Why Walmart is Aggressively Expanding Financial Offerings
Walmart is pursing financial services to deepen customer relationships, drive foot traffic, and tap into a large underbanked market.
63 million Americans are unbanked or underbanked according to the FDIC. Walmart can serve this population ignored by the traditional banking system.
Offering banking functions builds loyalty with Walmart‘s core low-to-middle income shoppers who need affordable financial options.
Financial services drive lucrative repeat store visits. A Walmart customers who cashes paychecks or sends money at Walmart likely purchases items onsite.
| Year | Walmart‘s Financial Revenue |
|---|---|
| 2021 | $6 billion |
| 2025 (Projected) | $10 to $12 billion |
With over half of Walmart store visits now including a financial transaction, this vertical contributes handsomely alongside retail sales–and expansion is accelerating.
The Financial Products Walmart Provides
Visiting a Walmart in 2024, you‘ll find a broad suite of financial services:
Prepaid debit cards – Functioning like bank accounts, Walmart‘s prepaid debit cards come with direct deposit, mobile check deposit, cash reloading, overdraft protection on qualifying cards, and other features. Leading offerings include the Walmart MoneyCard and Direct2Cash cards.
Money transfers – Walmart offers domestic and international transfers through MoneyGram and Walmart2Walmart options powered by Ria. Bill payments are also available for thousands of companies.
Check cashing – Rather than pay expensive fees at other locations, customers can cash government, payroll, tax refund, cashier‘s checks up to $5,000 at Walmart.
Financial products – From money orders to cryptocurrency to stocks through Robinhood, Walmart sells a wide range of financial products both online and in-stores.
Walmart‘s financial offerings aim to provide bank-like functions to the underbanked. (Source: Walmart)
This expansive suite of offerings essentially enables underbanked individuals and families to bank through Walmart. And unique fintech investments signal more embedded, digital financial experiences on the horizon inside Walmart.
Expert Predictions of Walmart Becoming a "Bank"
Walmart itself has shied away from officially declaring ambitions to become bank. However, experts observe its building banking infrastructure and seeking charter acquisitions.
“Walmart has a strategy of acting like a bank without becoming a bank,” notes large bank analyst Marty Mosby.
"Walmart is trying to become a financial services ecosystem for consumers and merchants," says Matt Schulz, chief credit analyst at LendingTree.
Though not yet a bank, Walmart‘s size and distribution muscle positions it to disrupt banking should it acquire a charter or launch specialized offerings. For now, customers can utilize Walmart‘s affordable prepaid cards, money services, check cashing, and other DIY banking functions.
Conclusion
Walmart is aggressive capturing business from the tens of millions of unbanked or underbanked Americans. While not a bank in 2024, Walmart‘s financial services portfolio already rivals national banks in capabilities and convenience. And through recent investments, partnerships, and fintech infrastructure, Walmart lays the foundation become a transformative force in consumer finance.
