Wal-Mart Stores and American Express announced Oct. 8 they’ve partnered up to launch a prepaid card they call a cheaper way for consumers to spend money than debit cards or checking accounts. In April, Wal-Mart (WMT) was No. 20 in BetterInvesting Magazine’s Top 100 Stocks Held by Our Members, while American Express (AXP) was No. 174.
Available online or at Wal-Mart stores next week, the card will let users deposit money from their payrolls, through an app, via cash or their bank accounts. It can be used where American Express is accepted.
The only fees are transparent and include $2 for out-of-network ATM withdrawals for a consumer who doesn’t have direct deposit, the news release says.
“Bluebird is our solution to help consumers who currently may be poorly served by traditional banking products. It allows them to easily and safely move, manage, and spend their money,” Dan Schulman, president of American Express’ enterprise growth group, explains in the news release.
ABC News blogger Susanna Kim quotes Gerri Detweiler, credit card expert from Credit.com, who notes that the card “combines the appeal of the American Express brand, ‘which is generally seen as an upscale card,’ and the wide distribution available through Walmart.” “It is likely Walmart and American Express would make revenue from swipe fees if a consumer uses the card at a retailer, Detweiler said.”
So you can bet both Wal-Mart and American Express hope Bluebird will be feathering their nests a bit, an interesting concept to consider for an investor who hopes the companies’ stock will continue to take flight.
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