Demand deposit

Walmart and Green Dot replace MoneyCard with a demand deposit account

Dive brief:

  • Walmart and fintech Green Dot said Thursday that the retailer’s MoneyCard is now offered as a demand deposit account, according to a press release. Users can manage their finances digitally or at Walmart’s 4,500 locations or over 90,000 Green Dot distribution points nationwide..

  • Consumers who convert their Walmart MoneyCard to a demand deposit account can access benefits such as overdraft protection and no monthly fees for a qualifying direct deposit of $ 500. Walmart MoneyCard users can access a digital banking platform that is “similar to a traditional bank account,” the retailer said.

  • Walmart is offering a $ 20 bonus to customers who activate a Walmart MoneyCard purchased online or in-store and deposit $ 500 or more by August 15, the retailer said.

Dive overview:

Walmart has more than one million MoneyCard account holders in the United States and Puerto Rico, according to Thursday’s announcement. The company plans to add more features for demand deposit account holders.

“We are excited to be working with Green Dot to provide customers with a more convenient and innovative way to manage their finances with the new Walmart MoneyCard, which offers cash back, overdraft protection, direct deposit, interest on l ‘savings and more,’ Julia Unger, Walmart’s vice president of financial services, said in a statement.

The deployment of demand deposit accounts marks the continuation of Walmart’s relationship with Green Dot. In 2019, companies renewed their prepaid card offer until January 1, 2027. That same year, companies have partnered to create the TailFin Labs fintech accelerator to develop products, services, and technologies that integrate omnichannel shopping for consumers and businesses with Green Dot’s banking platform as a service.

Walmart is also creating a fintech start-up, in partnership with the venture capital firm Ribbit Capital, to “develop and offer modern, innovative and affordable financial solutions”. Although details were scarce – other than a trademark filing that revealed the name and a potential logo for Hazel by Walmart – the startup managed to poach two executives from Goldman Sachs’ consumer banking arm, Marcus.

Walmart is also team up with Green Dot and PayNearMe offer customers a new way to pay their bills in cash in its stores.

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