Walmart Inc. (WMT - Free Report) , which is always on the lookout to come up with unique strategies to enhance customers’ shopping experiences, unveiled plans to collaborate with PayPal (PYPL - Free Report) yesterday. The companies are teaming up to provide financial services for the shared customers. The collaboration is undoubtedly a boon for millions of customers who rely on digital cash transactions for meeting everyday life needs. Moreover, the union of the two behemoths is expected to be accretive in bolstering the respective businesses. Undoubtedly, this news is likely to make Walmart’s peers jittery.
PayPal: A Worthwhile Inclusion
As a result of this union, customers will be able to access PayPal’s cash in and cash out services at Walmart, for a fee of $3 per service. In fact, through this facility, customers will be able to access PayPal’s digital wallet in a brick-and-mortar setting for the first time. Moreover, just like PayPal’s app users, its Cash Mastercard customers can now access accounts through Walmart’s service desks, cash registers and ATM’s, for the same fee of $3 per use. While PayPal’s cash in service will be immediately available at Walmart stores, the cash out facility will be available by early November.
Apart from easy money transfer, the deal is expected to aid Walmart add more customers. In fact, experts opine that this partnership might evolve into deeper business relationship in the forthcoming periods.
This is not the first time Walmart has introduced digital money transferring services in stores. The company’s previous efforts on this front includes Walmart2World money transfer service along with Walmart Pay mobile payment system. Such efforts have propelled this big box retailer to make robust advancements in the omnichannel space. Further, digital payment services have also supported the company’s e-commerce growth.
Efforts to Bolster Digital Spectrum
Apart from undertaking initiatives to simplify payments and money transfers, Walmart is also focusing on buyouts and partnerships to bolster offerings in the digital realm. To this end, the company’s partnerships with Microsoft (MSFT - Free Report) and Rakuten as well as the buyouts of ShoeBuy, Moosejaw, Bonobos, ModCloth and Jet.com are noteworthy. Moreover, to make online shopping simpler, Walmart focuses on improving delivery systems. Such moves indicate that Walmart has been constantly striving to bolster omnichannel presence and evolve as a one-stop shop for customers.
Wrapping up, we applaud Walmart’s robust efforts to maintain footing in the ever-evolving retail sector. From prudent partnerships to combining shopping with advanced technology, this supermarket giant has been playing several cards to maintain solid presence and stay competitive against Amazon (AMZN - Free Report) . That said, we expect the company’s latest stride to partner with PayPal will augment its business and help it stand out in the industry.
All said, we expect this Zacks Rank #3 (Hold) company to continue coming up with strategies that spice things up in the retail space. Notably, Walmart’s shares have gained 7.7% in the past three months compared with the industry’s 6.9% rise.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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