Walmart and PayPal this morning announced a partnership that will see the two collaborating on financial services and products, including new PayPal cash in and cash out services at Walmart stores, as well as the ability for PayPal Cash MasterCard customers to access their cash balance in-store at service desks, ATMs and cash registers.
The PayPal cash in and cash out money services will cost customers a $3 service fee, the companies say, as will the ability to pull cash out from MasterCard while in store. The companies declined to say how that fee is being shared.
Customers are also able to load cash into their PayPal balance while at Walmart, but this is not a new service as of today, we’re told.
The deal marks the first time that PayPal mobile app users will be able to take cash out from their PayPal balance while in a brick-and-mortar environment, though PayPal several years ago had partnered with retailers like Home Depot for integrations at the register.
In the years since, PayPal’s brick-and-mortar ambitions have died down, as Apple Pay and other tap-to-pay solutions grew to become the more popular way to pay via mobile devices at checkout.
In more recent months, PayPal has chosen to form closer ties with its earlier payment rivals, including through tighten integrations with Apple’s iOS, Samsung Pay, Android Pay, and other major stakeholders like Visa and MasterCard.
The Walmart partnership could be seen through the same lens, as Walmart, too, had once backed its own mobile payment platform, Current C, along with Target, CVS, Best Buy, and many other large retailers. It abandoned those efforts a couple of years ago and today, just offers Walmart Pay, its own scan-to-pay payments service that connects with customers’ saved credit, debit and gift cards.
With the PayPal deal, Walmart customers aren’t necessarily able to “check out” with PayPal, but they can go into the store, and get cash from PayPal – which can then be used to make purchases.
“Today’s news is the first time our two companies are working together to build products for our shared customers,” said Dan Schulman, President and CEO, PayPal, in a statement. “We consider this a key collaboration for both PayPal and Walmart. We are committed to working together to make it simple and easy for people to use PayPal cash in and cash out money services at every Walmart location in the U.S. We look forward to working hand-and-hand to help people and families with their financial services needs,” he added.
PayPal cash is available immediately at Walmart, while PayPal cash out will be available at all U.S. stores by early November.