If you have a PayPal account, adding or removing your balance will now be as easy as a trip to Walmart.
Thanks to a partnership between PayPal and Walmart, unbanked families will now have a better place to put their money as the holiday season approaches.
Paypal today announced that in early November, Walmart customers with a PayPal account will be able to deposit and withdraw money from their PayPal balance at any of the chain’s 4,761 locations across the board. national.
The service is available to all PayPal account holders, but if you have a PayPal Cash Mastercard, you will also be able to add or withdraw from your balance at Walmart ATMs or one of the retailer’s support services.
The service is not free
Regardless of how you access your money, the service will cost $ 3 per transaction. While paying a fee to access your own money is an inconvenience, the fees are comparable to average ATM fees most banks charge if you use an ATM outside your bank’s network.
It is important to note that this step is necessary if you want to use your PayPal balance to make a purchase from Walmart. You can’t just pay for your Walmart purchases directly through the PayPal app.
Who does it help?
One in four households falls into the unbanked or underbanked category, according to the FDIC. In many cases, these families do not have a bank account because they do not have the financial resources to justify opening an account in the first place. Other families simply do not understand how the banking system works.
This means that about 9 million families in the United States do not use any traditional banking services, and an additional 24.5 million households rely heavily on financial services outside the traditional banking system, such as predatory payday loans, even. whether they have a savings or current account.
Unbanked households also face another challenge: as their income can vary considerably from month to month, building an emergency savings fund is difficult. But for those who manage to save money for the proverbial rainy day, they are currently storing that money in their home or with a friend or family member, putting it at risk of theft or loss.
Online banking is even better, and it’s on the rise
While keeping your money in a PayPal account is a much better option than under your mattress, opening an account in a online bank is better. It offers the same FDIC insurance and easy mobile access as a PayPal account, but money stored in an online bank account has the potential to earn interest and can help you. build your credit.
The good news: Online banking usage is on the rise. The FDIC saw a substantial increase in online and mobile banking between 2013 and 2015, with more than a third of households reporting online banking as their primary method of accessing a bank account.