Introduction

Walmart declared an extension of its current relationship with the financial services provider Green Dot, which will remain to serve as the issuing bank and business manager for the Walmart MoneyCard program for added seven years. 

The two companies also agreed to associate on the production of a new accelerator that centers on the union of retail and user financial services.

The Introduction of Tailfin Labs

The accelerator, namedTailfin Labs, will assist startups in developing solutions that combine omnichannel shopping and financial tech, which can be directed either at users or businesses. 

These may include products created on top of Green Dot’s “Banking-as-a-Service” (BaaS) program.

What Is The Walmart MoneyCard?

Walmart partnered with Green Dot in 2006 to form the Walmart MoneyCard, which gives FDIC-insured accounts and cash-back bonuses on Walmart shopping.

Along with other features, like early straight deposit, online bill pay, reward savings entries, and much more.

As well as the typical set of features you’d have in a private checking account, but without the charges. 

It is currently the biggest retailer exclusive prepaid account plan in the U.S.

In several ways, it was also a forerunner to the kind of mobile banking startups noticed today, which quickly target users with similar products.

This is an active area these days, as more companies go after the expanding market of millennials and also their younger Gen Z counterparts who don’t need a conventional bank. 

Instead, they want banking services in a new, easy-to-use mobile interface, where innovative features assist them in saving and handling their money correctly.

Only last week, for example, the mobile banking app Current snagged $20 million more in funding for its business, presently used by half a million users. 

Various others in the area involve Step, Cleo, N26, Chime, Simple, and Stash, to name some.

The new accelerator is poised to benefit on this trend, while also providing Walmart and Green Dot with a new space in the market.

The current agreement between Green Dot and Walmart starts January 1, 2020, and will renew the deal that would have unless terminated in May 2020.

SEE ALSO: BoxGroup builds its primary externally supported fund to invest in seed-stage startups

Conclusion

Walmart’s extension of its partnership with Green Dot to manage the Walmart MoneyCard program, alongside the launch of Tailfin Labs, signals a significant step forward in the evolving landscape of financial services. This collaboration aims to support startups that innovate in combining retail and financial technologies, specifically targeting user-friendly solutions for modern banking needs. By focusing on emerging technologies like Green Dot’s Banking-as-a-Service program, Walmart and Green Dot are positioning themselves at the forefront of the digital banking revolution, which is gaining momentum among millennials and Gen Z who seek easy, mobile-based banking solutions without traditional bank requirements. For more information and the latest tech news, keep reading iTMunch. 

Frequently Asked Questions (FAQs)

1. What is Walmart MoneyCard?
The Walmart MoneyCard is a prepaid debit card offered in partnership with Green Dot. It provides FDIC-insured accounts, cashback rewards for Walmart purchases, early direct deposit, bill pay services, and more. It’s designed as an alternative to traditional checking accounts with no fees.

2. What is the partnership between Walmart and Green Dot about?
Walmart and Green Dot have extended their collaboration, with Green Dot continuing to manage the Walmart MoneyCard program for another seven years. They are also launching Tailfin Labs, an accelerator that will help startups create financial tech solutions.

3. What is Tailfin Labs?
Tailfin Labs is an accelerator designed to support startups in developing solutions that combine omnichannel retail and financial services. These solutions may leverage Green Dot’s Banking-as-a-Service platform, helping businesses create innovative products in the financial tech space.

4. Why is the partnership important for Walmart and Green Dot?
This partnership enables Walmart and Green Dot to strengthen their presence in the growing market for mobile and digital banking, especially among younger users who prefer easy-to-use, tech-driven financial services. It also positions them as leaders in this evolving sector.

5. How does Walmart MoneyCard benefit users?
Walmart MoneyCard offers several benefits, including cashback rewards on purchases at Walmart, early access to direct deposits, and the ability to pay bills online. It’s a cost-effective alternative to traditional banking, with no hidden fees.

6. How is Walmart MoneyCard different from a regular bank account?
Unlike a regular bank account, the Walmart MoneyCard does not come with the usual fees like maintenance charges or overdraft fees. It’s also more convenient for people who prefer mobile banking and want an easy way to manage their money without a traditional bank account.