American Express and Walmart have teamed up to launch a card-based banking system aimed at low-income customers who don't have bank accounts or only limited accounts, many of whom live in rural areas. The system, known as Bluebird, will allow for check deposits and payments by smartphone, has no minimum balance or monthly fees, and is Walmart's latest "foray into financial services," Barney Jopson and Tom Braithwaite of The Financial Times report. Customers will be able to make deposits at Walmart cash registers, and won't have to pay for overdrafts.
The announcement caused a 20 percent drop in shares of Green Dot, a card-based banking company that has already partnered with Walmart. American Express would not comment to The Financial Times about its investment in the program or how it would make a profit from it. Walmart previously tried to enter the banking world by acquiring a banking license in 2007, but failed. Its efforts have "triggered fierce opposition from some U.S. lawmakers and community banks wary of its power," Jopson and Braithwaite report. (Read more)
The announcement caused a 20 percent drop in shares of Green Dot, a card-based banking company that has already partnered with Walmart. American Express would not comment to The Financial Times about its investment in the program or how it would make a profit from it. Walmart previously tried to enter the banking world by acquiring a banking license in 2007, but failed. Its efforts have "triggered fierce opposition from some U.S. lawmakers and community banks wary of its power," Jopson and Braithwaite report. (Read more)
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