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Wal-Mart: A rising force in alternative financial services
April 23, 2009
BOSTON – A new report from Aite Group, LLC evaluates Wal-Mart's penetration of the alternative financial services market - specifically the check cashing segment. Based on data collected in Aite Group's Q4 2008 survey of 400 consumers of check cashing services, the report provides insight into the opportunities and challenges Wal-Mart faces in check cashing.
Over the last few years, U.S. retailers have developed an interest in providing alternative financial services - including check cashing, general purpose prepaid cards, money order purchase and bill payment - to unbanked and underbanked consumers. Perhaps none has been as successful as Wal-Mart. It's an ideal venue: Among regular check cashing store customers, 92 percent shop at Wal-Mart at least once per three-month period. Still, less than half of the surveyed population cash checks at Wal-Mart stores, with most preferring traditional check cashing centers due to a perceived convenience.
"In the check cashing space, Wal-Mart is now a force to be reckoned with," says Gwenn Bézard, research director with Aite Group and co-author of the report. "Still, the value proposition of regular check cashing stores remains very strong relative to Wal-Mart's MoneyCenters. Gaining greater market share won't be a walk in the park."
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