Walmart has decided to take another leap in the banking world and announced a prepaid card and debit account with American Express that will give low income consumers access to features like smart phones deposits.
It is a surprising alliance between the discounter Walmart and American Express, which until recently has been focused on high end customers. The move was intended to strengthen both the companies’ position in the prepaid card market which was unlike credit and debit cards and is mainly unregulated and has far fewer consumer protections.
The account named as Bluebird will be available for users from next week. The companies are positioning it as an option for people turned off by bank fees. Walmart and American Express declined to give more details of the financial relationship between the two companies but indicated both would be benefited from the card. The fees disclosed by the companies were generally less than those Walmart now charges for its prepaid MoneyCard.
To get a Bluebird account, customers can sign up free online or through mobile phones or pay $5 in a Walmart store. They would then receive a card stamped with the American Express logo which can be used anywhere American Express is accepted. They can also set up direct deposit for paychecks and deposit other checks by taking a mobile phone picture of them and can withdraw cash.