Wal-Mart to Open 1000 MoneyCenters by 2008

In another example of how far-reaching Wal-Mart's influence is, the company announced that 1000 new Wal-Mart Money Centers will be opening across the United States by the end of 2008.

The MoneyCenters will cater to those people that do not have access to traditional banking services. Services offered by the new MoneyCenters will include check cashing, money orders, bill payments and money transfers. Wal-Mart claims that customers that use the new MoneyCenters will be able to save up to 50 percent on service fees when compared to other non-bank money service providers. Currently, there are 225 MoneyCenters in the U.S., with an additional 225 opening by the end of the year.

Many of the MoneyCenter services have been previously available at the customer service counter at Wal-Mart. Each week there are more than two million money service transactions at Wal-Mart stores nationwide. Wal-Mart claims that customers who use their money services can save up to $40 a month. "The $40 our customers save each month can grow to become the down payment on a house or help pay for a child's college education," said Jane Thompson, President of Wal-Mart financial services. "That's our goal -- to help our customers prepare and save for the future by giving them access to greater financial opportunities."

In addition to announcing the rollout of MoneyCenters, Wal-Mart, in partnership with GE Money and Greed Dot, also announced the Wal-Mart MoneyCard, a prepaid Visa-branded debit card. Prepaid debit cards are aimed at customers who can't qualify for a checking account or a credit card. Prepaid debit cards allow those people without access to traditional banking services to rent cars, reserve hotel rooms, use "pay at the pump" gas stations and make purchases on the Internet. The Wal-Mart MoneyCard offers direct deposit or the ability to load a customer's paycheck onto the card at the MoneyCenter. Customers can then use the cards to shop, pay bills or to access cash at ATMs. The debit cards will be available at 1300 Wal-Mart stores by the end of June, with another 1300 stores being added to the program by the end of July. By the end of 2007, the cards will be available at most stores.

"Many of our customers are paying too much, traveling too far and not being well served," said Thompson. "But they still need to pay their bills, cash their checks and transfer money. We're offering them a safe place and a card to help them manage their money. We've seen firsthand what a difference that can make. It changes lives."

Source: Press Release: Wal-Mart Rapidly Expands Access to Low-Cost Money Services For Millions of Customers Nationwide (http://www.walmartfacts.com/articles/5117.aspx)