Walmart also does Instant Payment

Payment specialists and banks are not the only ones to carry the big trend of instant payments. Now, more unexpected players are also positioning themselves to offer this type of service to their customers. In the US, it is the giant of the distribution Walmart that plans to launch this type of solution, as an alternative to the bank card.

FACTS

• Walmart would therefore prepare a new payment service to allow its customers to pay for their online purchases made on Walmart sites, directly via a transfer initiated from their bank account.
• This new service will be launched through a partnership signed by Walmart with payment technology specialist Fiserv.
• The roll-out of the new instant payment service by Walmart and Fiserv is planned for 2025. Both partners are now working on its development within the services of the distribution giant.
• Transactions will be conducted through the NOW network of banking technology provider Fiserv, which is itself linked to The Clearing House’s RTP network and the Federal Reserve FedNow service.
• Only the Walmart e-commerce space is currently affected by this deployment. Fiserv is working to allow consumers who make their purchases on the Walmart e-commerce site to view their actual spending immediately on their bank account, just seconds after their purchases are validated.
• Walmart will receive the funds immediately.

CHALLENGES

• Rely on a strong partner: Walmart is considering the deployment of its new payment solution with Fiserv, whose purpose is to help food service, retail and grocery businesses optimize their financial operations. The company has recently achieved a market capitalization of almost $103 billion, and is pursuing its ambitions with Walmart.
• Participate in the rise of a trend: Fiserv is more widely involved in the deployment of news solutions that are instant payment solutions. The payment technology specialist has also worked with Visa to create and sign data access charters, promoting the deployment of open banking solutions in the US via Visa Open Banking Solutions.
• Offer an alternative to the bank card and limit costs: This initiative is a new illustration of the war that schemes and traders are waging over interchange fees and commissions considered high and imposed by schemes on each transaction.

MARKET PERSPECTIVE

• For Walmart, this deployment represents a new step in the diversification of its value-added payment services to its customers. The distributor is indeed looking forward to proposing new payment solutions to meet expectations. Before Fiserv, Walmart also partnered with Affirm to offer a BNPL option this time.
• The involvement of an actor like Walmart allows today to apply more concretely instant payment in the daily lives of consumers. It should also promote the democratization of FedNow, the instant transfer solution that has great ambitions in the United States.