Wal-Mart Stores Inc. (NYSE: WMT) announced Wednesday morning that it is cutting fees beginning today on its Walmart2Walmart money transfer service. Next month the company plans to introduce another transfer service, Bluebird2Walmart.
Both programs allow the store’s customers to send money to another Wal-Mart location in the United States and Puerto Rico where the recipient can present identification and pick up the cash.
The new fees for Walmart2Walmart transfers reduce the cost of the transfers by 20% to 90% compared to the leading competitor, according to the press release.
Wal-Mart kicked off its Walmart2Walmart transfer program in April 2014. Euronet Worldwide Inc. (NASDAQ: EEFT) subsidiary Ria provides the service as a licensed money transfer operator and Walmart is Ria’s authorized agent.
According to Wal-Mart, it will now cost $4 to send $50 to another store, $8 to send $250 to $1,000, and $16 to send $1,250 to $2,500. Comparable rates at Western Union Co. (NYSE: WU) are $5 to send $50, $12.50 to $86 to send $250 to $1,000, and $25 to $176 to send $1,250 to $2,500.
The Bluebird2Walmart service that begins next month is an extension of Wal-Mart’s Bluebird service offered in conjunction with American Express Co. (NYSE: AXP). This service requires that a consumer establishes a Bluebird account with Wal-Mart. Receivers do not need a Bluebird account to pick up the transferred money at a nearby Wal-Mart store.
Wal-Mart said that since its creation in 2014, Walmart2Walmart transfers have saved its customers nearly $500 million in service fees.
Wal-Mart stock traded up about 0.9% shortly before noon Wednesday at $75.76, a new 52-week high. The stock’s 52-week low is $62.72 and the consensus price target is $74.42.