LITTLE ROCK — Wal-Mart Stores Inc. of Bentonville and American Express said Monday that they have started a new service to provide consumers with a supplement to debit cards and traditional checking accounts.
Wal-Mart’s previous financial-services offerings were developed primarily for people who don’t have checking accounts, some of whom otherwise resorted to high-fee services such as payday loans.
Called Bluebird, the new service is aimed at consumers who are seeking advanced services such as depositing money and paying bills with their smart phones. The service, the companies said, will be available next week online at bluebird.com and in more than 4,000 Wal-Mart stores.
“Our customers tell us that they’re tired of navigating a complex maze of ‘dos and don’ts’ to avoid the ever growing list of fees found on checking products,” Daniel Eckert, vice president of financial services for Wal-Mart U.S., said in a news release. “Bluebird solves this problem and we believe it’s the best product on the market to help customers affordably manage their everyday finances.”
The service was initiated as a pilot program late last year and was shaped by feedback from customers,the companies said.
Dan Shulman, group president for enterprise growth at American Express, said Bluebird allows customers to easily and safely move, manage and spend their money.
Deposit options include direct payroll, remote check capture via the Bluebird mobile app, cash at any Wal-Mart register, or by linking a checking, savings or debit card to the account.
The companies said cash will be accessible at more than 22,000 MoneyPass ATMs across the country. Customers not enrolled in direct deposit will pay a $2 fee. Out-of-network withdrawals also trigger a $2 fee and may be subject to other fees by the ATM operator.
Bluebird likely will appeal to the low-income consumers Wal-Mart depends on because many can afford only basic bank accounts, said Matt Arnold, analyst with Edward Jones & Co. in Des Peres, Mo. Those checking accounts normally carry higher fees than ones that require a high minimum balance, for example.
The card appears to be created to increase store traffic and relevance, rather than profit, Arnold said.
“Anything they can do that adds to the one-stop shopping opportunity will only help their relevance,” he said.
Wal-Mart’s stock closed Monday at $75.25, up 12 cents, on the New York Stock Exchange. The stock has traded between $54.19 and $75.50 in the past year.
Information for this article was contributed by Matt Townsend of Bloomberg News.
Business, Pages 19 on 10/09/2012