Wal-Mart Brings Falling Prices to the Volatile World of Money Transfers
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Wal-Mart Stores often relishes the role of price disruptor, and the retail behemoth has now turned its penny-pinching attention to the business of transferring cash. That has caused great distress for MoneyGram, a Walmart partner for transfers and now newly minted rival, as well as other incumbents.
When the Walmart-2-Walmart money-transfer service launches at 4,000 U.S. locations on Thursday, it will cost $2 less than the $11.50 MoneyGram charges to move $50 to $200 between any two stores. The retailer is working with Ria, a provider of money transfers. Amounts under $200 currently account for more than 75 percent of remittances sent between Walmart stores through MoneyGram.