As a part of their digital transformation efforts, Walmart has decided to partner with PayPal to offer in-store balance withdrawals and deposits.
In other words, from now on, PayPal will allow you to deposit and withdraw cash from your account inside Walmart stores. Historically speaking, this is the first time that accessing your PayPal balance from a brick-and-mortal environment has been made possible.
Dan Schulman, PayPal Chief Executive, commented that this is the first time the above-mentioned companies are collaborating in this capacity. According to his words, they consider this a key partnership for both PayPal and Walmart.
Their services are mainly targeted at individuals who can’t afford mainstream financial services. According to the data provided by the Federal Deposit Insurance Corp, around 7% of US households are unbanked. Moreover, around 24.5 million of them are considered underbanked.
Specifically, PayPal has focused their efforts on providing solutions for the unbanked and underbanked population. This is evidenced by the company’s acquisition of TIO Networks, a Canada-based payment processor which they acquired in 2017.
In the earlier part of 2018, PayPal committed to rolling out additional features for the underbanked, which includes:
– FDIC coverage of the PayPal Wallet
– Debit card which you can use for the purposes of withdrawing cash
– Online check deposits
Having the option of using a debit card that’s linked to your PayPal account is not unheard of. Previously, the company offered their users one that allowed for depositing cash to PayPal accounts at retail locations.