Dive Brief:
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In its continued efforts to offer financial services, Walmart and fintech Green Dot announced that the Walmart MoneyCard is now offered as a demand deposit account, according to a Thursday press release. Users can manage their finances digitally or at Walmart's 4,500 locations or more than 90,000 Green Dot retail distribution locations nationwide.
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Consumers who convert their Walmart MoneyCard to a demand deposit account can access perks such as overdraft protection and no monthly fee for a qualifying direct deposit of $500. Walmart MoneyCard users can access a digital banking platform that is "similar to a traditional banking account," according to the company.
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Walmart is offering a $20 bonus to customers who activate a Walmart MoneyCard bought online or in-store and deposit $500 or more by Aug. 15, the retailer said in an announcement.
Dive Insight:
Walmart has more than a million MoneyCard account holders across the U.S. and Puerto Rico, per the announcement. The financial services firm plans to add more features for demand deposit account holders in the future.
"We are excited to work with Green Dot to provide a more convenient and innovative way for customers to manage their finances with the new Walmart MoneyCard, which offers cash back, overdraft protection, direct deposit, interest on savings and more," Julia Unger, vice president of Financial Services at Walmart, said in a statement.
The rollout of demand deposit accounts is a continuation of Walmart's ongoing relationship with Green Dot. In 2019, Walmart and Green Dot renewed their prepaid card deal through Jan. 1, 2027. That same year the companies teamed up to create fintech accelerator TailFin Labs to develop products, services and technologies that integrate omnichannel shopping for consumers and businesses with Green Dot's banking-as-a-service platform.
The retailer failed to obtain a banking charter years ago, but it has followed other retailers' footsteps in integrating financial services into their business model. Earlier this month, Walmart announced it is teaming up with Green Dot and PayNearMe to provide customers a new way to pay their bills in cash at its stores.
